With the exhaustion of the $10 million in REAP farm conservation tax credits within hours last week, the Chesapeake Bay Foundation this week called on Gov. Rendell and the General Assembly to increase the allocation for the program enabling more farmers to improve water quality statewide.

“This tremendous response demonstrates that farmers want to participate in REAP,” said Matthew Ehrhart, Executive Director of CBF’s Pennsylvania office. “They’re willing to do their part to better protect water quality, but can’t shoulder the burden alone.”

Agriculture contributes a significant amount of nitrogen and phosphorus pollution to the Susquehanna River, and ultimately to the Chesapeake Bay. With increasing pressure on Pennsylvania to meet water quality regulations, farmers need options to help them decrease pollution and soil erosion. REAP is designed to fulfill that need – but clearly additional funds are necessary in order to meet the demand.

“We’re delighted at the response,” said Mary Bender, REAP Director for the State Conservation Commission. “In the FY 07-08 application round, we received $10 million in tax credit applications in the first week for this new program; this time it took only one day. REAP is obviously playing a part in farmers’ decisions to invest in conservation practices on their farms.”

Since the application opening began on August 4, the SCC has received 448 applications with requests for FY 08-09 REAP tax credits totaling over $14 million. Due to the overwhelming response the SCC will stop accepting applications on August 15. As of that date, the application period will be closed.

“REAP is already making significant contributions to our statewide water quality improvement efforts and to local economies,” said Ehrhart. “Farmers are investing by matching the REAP tax credits nearly dollar for dollar. We hope the Governor and General Assembly will recognize the demand for and benefits of the program and increase the credit allotment next year.”

An increase in REAP Program funding is part of the Fair Share for Clean Water Plan promoted by a coalition of over 40 groups supporting creative implementation strategies for complying with Chesapeake Bay and other watershed-based clean water mandates.

A portion of the PA Fair Share Plan that provides funding to upgrade wastewater treatment plants was adopted as part of the budget in July, however, funding needed for farmers to meet the mandates and create tradable nutrient credits was not adopted. In fact, some Department of Agriculture programs were cut. Those elements include:

· $50 million in direct cost share aid to farmers to install conservation practices ($35 for REAP farm tax credits and $15 million in cost share grants);

· $10 million to county conservation district to expand technical assistance to farmers;

· $10 million to restore cuts to the Department of Agriculture budget in farm programs; and

· Proposed reforms to the state’s nutrient credit trading program that will help to make it a viable alternative to provide for both environmental improvements to the Bay and sufficient future sewage capacity for new development.

The House Agriculture and Rural Affairs Committee has scheduled a hearing on Fair Share agriculture conservation funding needs for August 20 at the Ag Progress Days farm show near State College.

The Senate Environmental Resources and Energy Committee will hold a hearing September 17 on nutrient credit trading legislation.

For more information, visit the REAP Program webpage or contact program administrator Mary Bender at 717-787-8821 or by sending email to: mabender@state.pa.us.

Link: First Come, First Serve REAP Farm Conservation Tax Credit Applications

Fair Share Coalition Fight for Clean Water Funding

8/15/2008