Pennsylvania farmers seeking help to offset costs of writing conservation and nutrient management plans may have overlooked one option: the Resource Enhancement and Protection program. REAP is a tax credit program that covers best management practices for reducing nutrient and sediment runoff from their operations.

Since the program began in 2007, REAP has awarded more than $50 million in tax credits to 3,900 projects. More than $128 million has already been invested in farm BMP projects. 

You can use the credits to cover plan writing, purchase conservation equipment and install practices that better protect the environment.

GOT YOUR PLANS? This farm already has written conservation and nutrient plans now required by Pennsylvania law.

Pennsylvania law requires farmers to have up-to-date conservation plans on all acres. Ag erosion and sediment plans also satisfy this requirement. And, any operation that has animals or spreads manure is required to have either a nutrient management plan or a manure management plan.

“We recognize there are farmers who want to do the right thing, but simply lack the resources to make this kind of investment,” says Pennsylvania Ag Secretary Russell Redding. “There are programs that can help, and REAP is one of them.” 

REAP can help offset up to 75% of the cost of developing these plans, he explains. You must have these plans to qualify for REAP credits on conservation equipment purchases and implement other water quality BMPs.

With the growing regulatory emphasis on farms meeting Pennsylvania’s water quality improvement goals — particularly within the Chesapeake Bay watershed — Redding urges farmers to look at REAP as an option for attaining a base level of compliance with state conservation and clean water requirements. 

How REAP works
Applications for the tax credits are now available. For more details and an application, click on REAP.

Funding is awarded on a first-come, first-served basis.

* Eligible applicants receive between 50% and 75% of project costs in the form of Pennsylvania state tax credits for up to $150,000 per agricultural operation.

* The tax credits can be used incrementally (as needed) for up to 15 years to pay state income tax. Farmers and landowners can elect to sell the tax credits after one year.

* Farmers can work with a sponsor to help to finance the BMP project. That sponsor reimburses the farmer/landowner for the project installation costs and the sponsor receives the tax credits.

* Applicants can apply for proposed projects and/or completed projects.

Got questions? Contact Joel Semke at 717-705-4032 or [email protected].

Compiled by staff