DEPARTMENT OF AGRICULTURE, FOOD AND MARKETS



BEST MANAGEMENT PRACTICE STATE FINANCIAL ASSISTANCE AWARDS



FY 2001 REPORT



JANUARY 18, 2001





Program Overview



This report documents the Department of Agriculture, Food and Market's Best Management Practice Cost Share Program investment in best management practice implementation in Vermont.



The Best Management Practice Cost Share Program enables farmers to cost effectively construct best management practice systems (BMPs). For many of the participants in the program, BMP construction would not be affordable without the state's grant. By constructing BMPs, farmers are able to more cost effectively use nutrients and handle agricultural wastes. BMP construction also enables farmers to comply with state and federal water quality regulations. Additionally, implementation of BMPs assures the significant public benefit of reducing phosphorus loading to waters of the state. The Department's BMP Cost Share Program enjoys widespread support from the agricultural and environmental communities, as well as the general public.



The Department's authority to cost share BMPs is governed by 6 V.S.A. Chapter 215 and the BMP Rules. The Department's grants are limited to a cap of 35 percent of the total actual costs of the system in cases where either the federal government or other entities cost share the system, or 50 percent on projects with no other source of cost share assistance. Combined federal, state and other cost share participation may not exceed 85 percent of the eligible costs, ensuring grant recipients pay at least 15 percent of the total cost of each BMP.



BMP systems eligible for state cost share dollars must meet design standards and specifications established by the USDA Natural Resource Conservation Service or be designed and certified by a professional engineer licensed in the State of Vermont to be equivalent to the federal performance standards and specifications. The system must be operated and maintained for the design life of the system (typically ten years) according to a plan that includes strict provisions for nutrient management and system upkeep. Failure to follow the operation and maintenance plan exposes the grant recipients to liability to repay the state's investment, either totally or in part.



Since the program began in 1996, $3.9 million have been committed to build 947 BMP projects on 449 farms. When these funded projects have been completed, phosphorus loading to water courses will be reduced by an estimated 41,960 pounds annually statewide and by approximately 29,103 pounds annually in the Lake Champlain Basin. These reductions enable agriculture to keep on track in meeting the phosphorus reduction targets required by the Lake Champlain Basin Plan.



The Application Process



Applications are accepted throughout the year with preference given to applicants who submit requests before October 1 for funding in the next fiscal year. Applications are evaluated on a competitive basis before obligating capital funds.



All applications are evaluated by the Department's BMP Cost Share Program Advisory Committee according to the funding priorities established in the statute and the BMP Rules.



Fiscal Year 2001 Fund Obligation Summary



Application Summary



Total number of applications received: 140



Grant Summary



Number of grants awarded: 58

Number of practices funded: 210

Dollars obligated to grants awarded: $1,189,800.00



FY 2001 Fund Obligation



FY 2001 appropriation $1,189,800.00

Obligated as of 01/18/2001 $1,155,134.28



Funds not obligated as of 01/18/2001 $34,665.72



Summary of Program Commitments



This report outlines where the capital construction funding authorized by the Legislature has been allocated. Many applicants have received cost share dollars for more than one BMP practice on their farms in an effort to geographically maximize phosphorus reduction. For example, a farm with no waste storage and uncontrolled nutrient runoff from the barnyard would require a manure storage structure (either a pond, field stacking pad or above-ground structure), a paved barnyard that includes filter strips to treat runoff prior to entering waters of the state, and a milkhouse waste treatment system.



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