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Incentive Programs for the Implementation of Agricultural BMPs

Incentive Programs for the Implementation of Agricultural BMPs. Curriculum Source: VA Agricultural BMP Manual. Objectives. Define BMP.

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Incentive Programs for the Implementation of Agricultural BMPs

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  1. Incentive Programs for the Implementation of Agricultural BMPs Curriculum Source: VA Agricultural BMP Manual

  2. 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).

  3. 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

  4. 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

  5. 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

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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

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