Incentive Programs for the
Implementation of
Agricultural BMPs
Curriculum Source:
VA Agricultural BMP Manual
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).
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
VA AG BMP Cost-Share
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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
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
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.
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.
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.
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.
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.
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.
Agricultural BMP
Loan Program (Cont.)
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•
•
•
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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.
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.
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.
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