Both the House and Senate passed slightly different versions of the Resource Enhancement and Protection Act (REAP) that would give farmers tax credits for installing conservation practices.

The Senate and House are now in the process of reconciling those differences.

Senate Bill 97 (D.White-R-Indiana) was amended to add REAP to other tax credit programs being considered, passed by the House and is now in the Senate for action. Senate Bill 690 (Waugh-R-York, O’Pake-D-Berks), also containing REAP, passed the Senate and went to the House for action.

Both versions of the program would set the initial cap on tax credits at $10 million annually.

“The Pennsylvania Farm Bureau strongly supports REAP as a viable approach to increasing the return on the public's investment in environmental stewardship by encouraging the private sector to help finance needed best management practices on farms,” said Joel Rotz, State Governmental Relations Director for the PA Farm Bureau. “The state budget is about public priorities and we believe this should be one of those included.”

“Agriculture generates $4.8 billion in farm production each year, with dairy farms leading the way,” said PA Executive Director of CBF, Matthew Ehrhart. “By enacting REAP, the Governor and our legislators will be taking significant strides toward cleaning up our rivers and streams, providing cleaner drinking water, and creating healthier, more financially productive farms.”

A coalition of more than 65 farm, environmental, business and sportsmens’ groups support REAP and recently called on the General Assembly and Gov. Rendell to take final action on the program.

Video Blog: Coalition Urges Action on REAP

“REAP will establish one of the most important programs to benefit agriculture and water quality in Pennsylvania’s history,” said Rep. Jerry Stern (R-Blair). “This ground-breaking legislation will not only help our streams, but will also help the economic stability of our agricultural industry.”

“REAP will clean up the water that serves us all, without burdening our farmers with unmanageable debt,” said Rep. Peter Daley (D-Washington). “It uses proven market mechanisms to connect farmers with a need with taxpaying businesses who can help out. It is an efficient, innovative solution that uses less bureaucracy to get the same job done in less time.”

Rep. Stern and Rep. Daley are the primary sponsors of the House version of REAP-- House Bill 100

“As a member of the Chesapeake Bay Commission, I understand the need to clean up our rivers and streams and the role agriculture can play,” said Sen. Mike Waugh (R-York). “I also know farmers cannot do it on their own. REAP would give farmers a creative new tool that makes the private and public sectors real partners in achieving our water quality improvement goals.”

“Agriculture is Pennsylvania’s number one industry, but unfortunately we have lost farms and farmers over the last 10 years, 23 percent of dairy farms alone,” said Sen. Michael O’Pake (D-Berks). “The REAP proposal gives farmers, particularly dairy operations, much needed assistance to install farm conservation practices that not only reduce nutrients and sediment runoff, but increase farm productivity and reduce costs. That means more usable income for our farmers at this critical time.”

Sen. Waugh and Sen. O’Pake are the prime sponsors of the Senate version of REAP-- Senate Bill 690.

REAP would provide transferable state tax credits to Pennsylvania farmers who proactively plan and implement highly effective conservation practices to reduce runoff. Businesses that sponsor such conservation projects will also be eligible for corresponding tax credits. REAP will improve water quality and strengthen our agricultural communities and the economy statewide.

The bill provides personal and business state tax credits ranging from 25 to 75 percent of the cost to install best management practices like barnyard improvements, riparian buffers, stream fencing and other practices. The development of manure management plans on farmlands, and forested buffers on non-farm lands, would also be eligible for credit. Each farmer enrolled in the program is eligible for up to $150,000 in tax credits which can be extended over a period of 15 years.

To learn more, visit CBF’s REAP webpage and find Pennsylvania’s impaired waterways on this webpage.

7/13/2007