There are many programs available that target farm operations. This page will only discuss a few of the major programs and then provide links to others. The Natural Resources Conservation Service is a federal agency and funds many of the programs.
EQIP - Environmental Quality Incentives Program
EQIP provides technical and financial help to landowners to install "Best Management Practices" (BMPs) that protect soil and water quality. This NRCS program provides millions of dollars every year to Pennsylvania farmers. It is the largest program that funds BMPs. A list of BMPs include:
How do I sign up and what are the strings attached? You can sign up for EQIP at any time of the year. However, NRCS ranks each farm for funding in the early spring, and again in the fall, so you must wait until the ranking occurs to learn if you will be approved for funding. The easiest way to sign up is to visit your local NRCS office. EQIP contracts last from 1-3 years depending on the goals of the funding. Typically there is a small penalty if a farm signs a contract, but then backs-out and refuses to install the proposed components. Every farm that applies for EQIP funding is ranked against other farms in their region. A farm that is close to a stream and is willing to install stream buffers will rank higher. Also, a Comprehensive Nutrient Management Plan (CNMP) gives a farm so many points on the ranking score that a CNMP is now basically required if a farm wants to have a good chance to receive funding. Don't worry, because a farm can also receive funding to help pay for the CNMP!
If a farm receives funding, the farm has to enter into a contract with the NRCS and agree to accept the funding. Then an engineer, either from the NRCS or a private engineer such as R&R Engineering, will design the project. All projects that receive funding must be sealed by a professional engineer. Special "TSP Funding" is sometimes available to pay for private engineering services.
Construction of BMPs is completed by experienced contractors. Because of the longevity of these Ag programs and the size of the farming economy, many contractors specialize in building agricultural projects. Most projects are sent out for bid to several contractors to ensure that the project is completed at a competitive price. At the end of the project, all BMPs must be certified by an engineer that they meet Pennsylvania Standards and Specifications.
What pitfalls and headaches are there? EQIP pays for practices based on a 'flat rate'. For example, in 2013 the payment rate for a 6" stormwater pipe is $4.50/ft, installed. However, if the excavator for the project bids this pipe at $6.00/ft, the difference in cost comes out of the farmer's pocket. With the cost of many projects exceeding $100,000, a farm may need to contribute a substantial sum, possibly 25%, of the total project cost. It is also important to understand that the actual payment the farm receives is based on the "installed quantity" and not the number that is in the contract. For example, the contract with NRCS may have 1000 feet of 6" pipe, with a funding dollar value of $4,500 (1000ft x $4.50/ft). However, if only 800 feet of pipe are actually installed during the project, the farm will only receive $3,600 (800ft x $4.50). The dollar figures in the contract are not necessarily the amount of money the farm will actually receive!
Growing Greener
This Pennsylvania State Program received new funds for a variety of environmental projects including acid mine drainage, stormwater control and Agricultural Best Management Practices. This program is typically administered by your County Conservation District. Contact your Conservation District to learn if they can get or have Growing Greener Grant funding.
REAP - Resource Enhancement and Protection
EQIP - Environmental Quality Incentives Program
EQIP provides technical and financial help to landowners to install "Best Management Practices" (BMPs) that protect soil and water quality. This NRCS program provides millions of dollars every year to Pennsylvania farmers. It is the largest program that funds BMPs. A list of BMPs include:
- Manure storage and Handling Systems
- Concrete Banryards
- Grassed Waterways and Diversions
- New Access Lanes
- Roof runoff controls, rain gutters
- Stormwater Pipes
How do I sign up and what are the strings attached? You can sign up for EQIP at any time of the year. However, NRCS ranks each farm for funding in the early spring, and again in the fall, so you must wait until the ranking occurs to learn if you will be approved for funding. The easiest way to sign up is to visit your local NRCS office. EQIP contracts last from 1-3 years depending on the goals of the funding. Typically there is a small penalty if a farm signs a contract, but then backs-out and refuses to install the proposed components. Every farm that applies for EQIP funding is ranked against other farms in their region. A farm that is close to a stream and is willing to install stream buffers will rank higher. Also, a Comprehensive Nutrient Management Plan (CNMP) gives a farm so many points on the ranking score that a CNMP is now basically required if a farm wants to have a good chance to receive funding. Don't worry, because a farm can also receive funding to help pay for the CNMP!
If a farm receives funding, the farm has to enter into a contract with the NRCS and agree to accept the funding. Then an engineer, either from the NRCS or a private engineer such as R&R Engineering, will design the project. All projects that receive funding must be sealed by a professional engineer. Special "TSP Funding" is sometimes available to pay for private engineering services.
Construction of BMPs is completed by experienced contractors. Because of the longevity of these Ag programs and the size of the farming economy, many contractors specialize in building agricultural projects. Most projects are sent out for bid to several contractors to ensure that the project is completed at a competitive price. At the end of the project, all BMPs must be certified by an engineer that they meet Pennsylvania Standards and Specifications.
What pitfalls and headaches are there? EQIP pays for practices based on a 'flat rate'. For example, in 2013 the payment rate for a 6" stormwater pipe is $4.50/ft, installed. However, if the excavator for the project bids this pipe at $6.00/ft, the difference in cost comes out of the farmer's pocket. With the cost of many projects exceeding $100,000, a farm may need to contribute a substantial sum, possibly 25%, of the total project cost. It is also important to understand that the actual payment the farm receives is based on the "installed quantity" and not the number that is in the contract. For example, the contract with NRCS may have 1000 feet of 6" pipe, with a funding dollar value of $4,500 (1000ft x $4.50/ft). However, if only 800 feet of pipe are actually installed during the project, the farm will only receive $3,600 (800ft x $4.50). The dollar figures in the contract are not necessarily the amount of money the farm will actually receive!
Growing Greener
This Pennsylvania State Program received new funds for a variety of environmental projects including acid mine drainage, stormwater control and Agricultural Best Management Practices. This program is typically administered by your County Conservation District. Contact your Conservation District to learn if they can get or have Growing Greener Grant funding.
REAP - Resource Enhancement and Protection
- The Resource Enhancement and Protection (REAP) Program allows farmers and businesses to earn tax credits in exchange for "Best Management Practices" (BMPs) on agricultural operations that will enhance farm production and protect natural resources.
- The program is administered by the State Conservation Commission (Commission) and the tax credits are awarded by the Pennsylvania Department of Revenue.
- Eligible applicants may receive between 50% and 75% of project costs as state tax credits for up to $150,000 per agricultural operation. The amount of tax credit available to a recipient is dependent on the type of BMP implemented.
- The farmer can use the PA State Tax Credits, or can sell them at a small loss for cash after holding onto the credits for at least one year.
- Joel Semke
Resource Enhancement and Protection
Program Administrator
(717) 705-4032