Pa. farmers can ‘REAP’ benefits of tax credits by applying for this program

HARRISBURG, Pa. — Pennsylvania farmers are making further investments in the environment by implementing on-farm conservation practices, thanks to the Resource Enhancement and Protection tax credit program, or REAP.

The program encourages farmers to use conservation best management practices to reduce erosion and sedimentation impacting Pennsylvania’s streams and watersheds.

It has proven to be an effective tool to reduce sediment and nutrient — specifically, phosphorous and nitrogen — runoff from their farms.

Excess nutrients that exceed a waterway’s absorption capacity become pollutants that destroy aquatic and plant life.

Projects

In the first round of the program’s funding, almost half the credits approved for eligible projects were for no-till planting equipment.

Other best management practices that received a high percentage of approved credits were for waste storage facilities and for protecting heavy animal use areas such as barnyards.

Using the Chesapeake Bay Program Model, it is possible to estimate benefits related to certain best management practices.

Thanks to the program, no-till equipment purchases alone have reduced sediment runoff into Pennsylvania waterways by more than 18,000 tons, and other practices have helped eliminate hundreds of thousands of pounds of nitrogen, phosphorus and sediment.

How to apply

Applications for the 2009-2010 program will be accepted by the commission beginning Aug. 3, on a first-come, first-served basis. Applications postmarked prior to July 30 will be returned.

All applications received by the commission postmarked July 30 and later and received by the close of the business day on Aug. 3 will be pooled, randomly selected and assigned a number.

Because the total amount of available 2009-2010 Resource Enhancement and Protection program tax credits is dependent on the state budget to be finalized later this summer, applications will be accepted until the appropriation has been committed to eligible projects.

Gov. Edward Rendell’s budget proposal included an additional $10 million for the program in fiscal 2009-10.

Farmers can receive tax credits of up to $150,000 per agricultural operation for 50 or 75 percent of the total cost of a conservation project, depending on the best management practice implemented.

Farmers may also qualify for a 50 percent tax credit to purchase no-till planting equipment.

More resources

The annual report, program guidelines and applications are available at www.agriculture.state.pa.us/REAP.

A one-hour Webinar explaining the details of the guidelines and application process hosted by the commission is also available on the Web site.

For those without Internet access, the commission can mail paper applications.

Applicants are encouraged to work with local county conservation districts or the Natural Resources Conservation Service before applying to ensure current plans are in place for each farming operation, including conservation, agricultural erosion and sedimentation control, and nutrient management plans, if required.

All applicants who applied in the previous fiscal year but not approved because the program’s credits were exhausted, will receive a short addendum application in the mail.

These applicants will not be given any priority and must submit this application with all new applicants.

For more information about the program, contact Program Administrator Mary Bender at 717-787-8821 or via e-mail at mabender@state.pa.us.