incentive programs for the implementation of agricultural bmps
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Incentive Programs for the Implementation of Agricultural BMPs. Curriculum Source: VA Agricultural BMP Manual. Objectives. Define BMP. - PowerPoint PPT PresentationTRANSCRIPT
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Incentive Programs for the Implementation of Agricultural BMPs
Curriculum Source:
VA Agricultural BMP Manual
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Objectives
• Define BMP.• List and explain the incentive programs
that are available through the Soil and Water Conservation District to assist with the implementation of agricultural best management practices (BMPs).
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Incentive Programs
• VA Agricultural Best Management Practices (BMP) Cost-Share Program
• Conservation Reserve Enhancement Program (CREP)
• VA Agricultural BMP Tax Credit Program
• VA Agricultural BMP Loan Program
• Small Business Environmental Compliance Assistance Fund
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VA AG BMP Cost-Share
• Administered by DCR thru local SWCDs.• SWCDs recruit participants.• > 30 Eligible BMPs.• Cost-Share
– Flat Rate– Percentage– Combination
• Cost-Share Caps– State Cap = $50,000– District Cap
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BMP Cost-Share (Cont.)
• BMPs must be part of a NRCS Conservation Plan.
• Cost-Share is approved by the local SWCD based on set criteria that improve water quality.
• Cost-Share Payments are disbursed when a BMP is complete and certified.
• Reference: Current PY VA AG BMP Manual
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CREP• CREP = Conservation Reserve Enhancement Program• Combination of Federal and State Funds.• Enhanced version of the Federal CRP (Conservation
Reserve Program).• Two Geographical Components
– Chesapeake Bay– Southern Rivers
• Basic Elements – Livestock Exclusion– Riparian Buffer– Wetland Restoration
• FSA approves contract.• SWCD makes state portion of payment.
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BMP Tax Credit
• Applicable to any individual or corporation engaged in agricultural production for market.
• Administered by local SWCDs.• > 40 BMPs eligible for Tax Credit.• Must have an approved Conservation
Plan.• Granted after the BMP is completed
and certified. – Tax Credit Certification Letter is issued.
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BMP Tax Credit (Cont.)
• Equal to 25% of the cooperator’s approved (out-of-pocket) expenses, not to exceed $17,500 in any taxable year.
• Must be applied in the tax year the BMP is completed.
• Can be carried over for up to 5 yrs.
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Equipment Tax Credit
• Credit for the purchase of conservation tillage equipment and advanced technology application equipment.
• Must have a Nutrient Management Plan approved by the local SWCD for advanced technology application equipment.
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Equipment Tax Credit (Cont.)
• Can be up to 25% of the purchase not to exceed:– $4,000 for conservation tillage equipment– $3,750 for advanced technology application
equipment
• Must be applied in the tax year the equipment is purchased.
• Can be carried over for up to 5 years.
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Agricultural BMP Loan Program
• Administered by the Department of Environmental Quality (DEQ).
• Applicable to any VA producer wishing to implement eligible BMPs in order to reduce the effect of polluted runoff entering VA waters.
• > 20 BMPs are eligible for the loan program.
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Agricultural BMP Loan Program (Cont.)
• Approved Conservation Plan.
• Interest Rate
• Minimum Loan Amount = $5,000
• Loan Repayment Period = BMP lifespan
• Individual loans will be administered by certain participating lending institutions.
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VA Small Business Environmental Compliance Assistance Fund
• Administered cooperatively by DEQ and the Department of Business Assistance (DBA).
• Individual loans will be administered by DBA.
• Applicable to any small business operating in VA.
• >15 BMPs are eligible for the loan program.
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VA Small Business Environmental Compliance Assistance Fund
• Agricultural BMPs require approved Conservation Plan.
• Maximum Loan = $100,000.
• Interest Rate is 3%.
• Loan repayment period – BMP lifespan.
• BMPs needed as part of an issued enforcement action are not eligible for loan funds.
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Program Contacts
• BMP Cost-Share Programs & Tax Credit– Local SWCD– DCR Watershed Conservation District Coordinator
(CDC)• CREP
– DCR Richmond Office, CREP Program Manager• Equipment Tax Credit
– DCR Watershed CDC or Ag. Incentives Program Manager
• Agricultural BMP Loan Program– VA DEQ Construction Assistance Division
• Small Business Environmental Compliance Assistance Fund– VA DEQ Small Business Assistance Program Manager