Why Is This Cow Smiling? Read About REAP Passing

The General Assembly gave final approval to the Resource Enhancement and Protection Act (REAP) that gives farmers tax credits for installing conservation practices and sent the legislation on to the Governor for his action.

The Chesapeake Bay Foundation and more than 65 environmental, sportsmen, agricultural groups, and businesses throughout the Commonwealth joined together in applauding the passing of REAP.

“We appreciate the steadfast commitment of REAP’s sponsors to seeing this legislation through, and for their dedication to improving water quality while helping farmers make ends meet,” said Matthew Ehrhart, Executive Director of CBF’s Pennsylvania office. “They clearly understand that a healthy environment and healthy farms go hand in hand, and that REAP will make significant strides toward meeting Pennsylvania’s obligations to reduce pollution going into our streams, rivers, and the Chesapeake Bay.”

REAP is a bipartisan measure sponsored by Representatives Jerry Stern (R-Blair) and Peter Daley (D-Washington) and Senators Mike Waugh (R-York) and Michael O’Pake (D-Berks), along with 79 other co-sponsors.

REAP was included in Senate Bill 97 (D.White-R-Indiana) that made several other changes to the Tax Code.

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

“As a member of the Chesapeake Bay Commission, I understand the need to clean up our rivers and streams, and the role that agriculture can play in those efforts,” said REAP sponsor, Sen. Mike Waugh. “I also know farmers cannot do it alone. By enacting REAP we are giving our family farms a chance to improve their bottom line, while improving statewide water quality.”

“REAP uses proven technologies to enable farmers and businesses to work together to protect water quality and the health of our agricultural economy,” said Rep. Peter Daley. “It is an efficient, innovative solution, and it uses less bureaucracy to get the same job done.”

“Agriculture is Pennsylvania’s number one industry, with dairy farming leading the way. But the economic burdens farmers face are forcing many to sell their land and their farms,” said Sen. Michael O’Pake. “REAP is going to provide farmers, particularly dairy operations, with much needed assistance to install farm conservation practices that not only reduce nutrient and sediment runoff, but also increase farm productivity and reduce costs.”

REAP provides 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. There is no limit on amount of tax credits a business sponsoring projects on farms can be awarded.

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

To learn more, visit CBF’s REAP webpage.

7/20/2007