SB 778

This bill requires the Department of Agriculture, Trade and Consumer

Protection to create a sustainable agriculture grant program, under which DATCP

may award grants to farmers to 1) implement on-site fossil fuel input efficiency

measures; 2) plant vegetation such as hedgerows, windrows, or riparian buffers; 3)

implement approaches to increase the carbon stored in the soil; or 4) develop a

conservation management plan for carbon reduction or sequestration.

Under the bill, a grant may not be awarded for a project that occurs on lands

participating in a land retirement program or on commercial forest lands or for

aquaculture-based projects. In addition, a grant may not be awarded to a farmer

who is eligible for the combined state-federal conservation reserve enhancement

program, unless the farmer has already applied for that program, or to a farmer who

is eligible for any other state, federal, or local grant for the same conservation

actions, unless the farmer has already applied for that grant.

The bill requires DATCP, in prioritizing grant recipients, to seek to maximize

the total reduction in atmospheric carbon dioxide equivalents per grant dollar

awarded by leveraging other nonstate public or private funding. In addition, DATCP

must prioritize projects that both improve air or water quality and provide

agronomic benefits. DATCP must also attempt to provide grants to farmers in

different parts of the state and for different types of projects and must ensure that

small- and medium-sized farms are included in the grant program. Under the bill,

DATCP may use up to 20 percent of the amount appropriated for the grant program

to create educational programs about the grants, to provide technical assistance, to

develop models to assist in prioritizing grant awards, and to administer the grant

program.

The bill allows a grant recipient to use grant funds to make down payments on

equipment or other types of loans related to the purpose of the grant. The bill also

allows grants awarded for carbon storage projects that have an uncertain storage life

to include ongoing annual payments for the previous year's storage or upfront

cumulative payments based on the expected storage in future years.

The bill also allows DATCP to require a grant recipient to allow access to the

property on which the grant project will take place and requires DATCP to maintain

a public list of all grant recipients, the amount of money spent or borrowed under the

program, and the impact on total atmospheric carbon dioxide equivalents emissions

under the program.

In addition, the bill provides that an offer of a grant under the new grant

program qualifies as a bona fide offer of cost-sharing. Under the current soil and

water resource management program, unless a farmer receives a bona fide offer of

cost-sharing from DATCP or the Department of Natural Resources, the farmer is not

required to follow the conservation practices set by DATCP and DNR if doing so

would require the farmer to discontinue or modify cropping practices on existing