01-001-35 Me. Code R. § 4

Current through 2024-51, December 18, 2024

Section 001-35-4 - PAYMENT-FOR-PRACTICE PROGRAMS

1. The following provisions apply to all Payment-for-Practice programs contained in Section 4.

A. All farm operations that produce agricultural products with a gross annual value of at least $2,000 that are sold commercially or intended to be sold commercially are eligible to participate in Payment-for-Practice programs. Established 501-C3 non-profit organizations and farm operations that support community access to agricultural products are also eligible to participate. This may include but is not limited to organizations that provide farmland access to historically underserved farmers; that farm on land held in trust for the purpose of conservation to provide local access to fresh agricultural products; and/or that offer research, training, and education opportunities to farmers.

B. All farm operations, organizations, and farmland supported by the MHSF must be located in Maine.

C. The Commissioner may use their discretion to determine how much funding is annually available for each program, to the extent any funding is available.

D. The Commissioner will notify applicants of a decision to fund in writing and may make awards for amounts lower than requested by the applicant. By applying for the funding, the applicant agrees to the conditions imposed by the funding award application solicitation. Applications determined to be ineligible will be informed of the reasons for the determination in writing. Ineligible applicants may reapply in future funding cycles. Incomplete applications may result in an applicant being determined ineligible for program participation. Unsuccessful applicants, applicants determined to be in violation of terms and conditions, and applicants who are awarded less money than requested may appeal the decision to the Department. Appeals shall be governed by Department rules chapter 01-001 CMR c. 8.

E. Awardees must adhere to all verification and reporting requirements set forth by the Department in the terms and conditions. The Department may use its discretion to revoke eligibility and/or withhold payment of any or all grant funds to a grant recipient if the grant recipient has not complied with the terms and conditions for Maine Healthy Soils Program financial assistance. Such determination must be issued in writing.

2. Soil Health Testing Program

A. Purpose and Limitations

The Commissioner may make funds available to incentivize soil health testing for the purpose of improving on-farm decision support regarding soil health. Funds may cover the entire cost associated with testing, including but not limited to laboratory and shipping fees. Farmers may submit a request for soil health testing to the State Soil Scientist, who will coordinate soil sample collection, submission to a qualified lab, and direct payment of related fees. Farmers are eligible to receive this incentive one out of every three (3) funding cycles. Soil health testing must be conducted within the state fiscal year during which the request is made. The Department may contract with soil testing laboratories through a competitive bid process to secure soil health testing services.

B. Application Requirements

The applicant shall submit a written request to the State Soil Scientist on Department-approved forms. The applicant must include a map of the farm area to be covered by soil health testing.

C. Criteria for Selection

All applicants that submit a completed application, meet eligibility requirements, and have not received this incentive in the last three (3) years qualify for an award. Awards will be offered to qualified applicants in the order the application was received until funding is fully committed.

3. NRCS Top-Off Program

A. Purpose and Limitations

The Commissioner may make funds available to incentivize farmer participation in the United States Department of Agriculture's (USDA) Natural Resource Conservation Service (NRCS) programs for the purpose of enhancing enrollment in those programs and reducing the total cost of program participation to the farmer. The Commissioner will annually communicate if funds are available for awards through this program. Funding announcements will be issued, and applications will be accepted for a time determined by the Commissioner. The Commissioner or their designee will review applications to ensure eligibility is met and applications are complete. This incentive is only available for NRCS Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP) projects that are related to soil health as determined by the Commissioner. Funds may be used to reimburse farmers for the difference between incurred costs and cost-share provided by NRCS, and requests may not exceed this difference.

B. Application Requirements

The applicant shall submit a written application to the Commissioner on forms provided by the Department and will include:

(1) Documentation demonstrating total project costs, proof of project completion, amount of cost-share provided by NRCS, and when cost-share was paid. By applying, the applicant agrees to allow the State Soil Scientist to contact NRCS for additional information on the EQIP or CSP project as necessary to determine application completeness and thoroughness; and

(2) An explanation of how this top-off payment for the EQIP or CSP project in question benefits soil health and their farm.

C. Criteria for Selection

All applicants that submit a completed application, meet eligibility requirements, and demonstrate that their project is soil-health related and that incurred costs are not unreasonable and/or excessive are qualified to receive an award.

D. Payment Structure

Available funds will be equitably distributed across all qualified applicants. Award amounts will be determined by first calculating the cost-share gap for each qualified applicant by taking the difference between incurred costs and cost-share paid by NRCS for each applicant. Next, the cost-share gap will be summed across all applicants to calculate a total cost-share gap. Then each qualified applicant's cost-share gap will be divided by the total cost-share gap, and that calculation will be multiplied by the funding amount stated in the funding announcement to determine each applicant's award amount. This procedure will apply except to the extent any award amount exceeds that applicant's cost-share gap, in which case that applicant's award amount will equal the applicant's cost-share gap.

E. Advances

Applicants may apply for a cost-share advance, wherein top-off funds are awarded to the applicant prior to the start of the project. Advances are conditional on the applicant earning an EQIP or CSP award. Applicants must first apply and be approved for an advance and then provide proof that the project has been awarded before funds are released. Advance amounts are not to exceed the cost-share gap of the proposed project. Applicants receiving an advance must document expenses and/or proof of payment and submit documentation to the Department for review and final approval upon project completion. Failure to submit expense documentation or use of funds for non-project-related expenses may result in claw back. Any remaining funds not spent upon project completion must be repaid to the department.

4. Healthy Soils Best Practice Incentive Program

A. Purpose and Limitations

The Commissioner may make funds available to farmers to incentivize the adoption of healthy soils best practices for the purposes of improving the health, yield, profitability, biological diversity, and greenhouse gas drawdown of Maine's agricultural soils. Funds may be used to incentivize specific soil health best practices as identified by the Commissioner or their designee in the funding announcement. The Commissioner will annually communicate if funds are available for awards through this program. Funding announcements will be issued, and applications will be accepted for a time determined by the Commissioner. The Commissioner or their designee will review applications to ensure eligibility is met and applications are complete. Awards are made for a 5-year period of time, and payment may be requested for up to 50 acres of farmland on which healthy soils best practices are applied. Applicants may request payment for additional farmland up to 180 acres, which will be awarded based on available funding. Payments are made annually upon satisfactory completion of annual reporting requirements. Annual reporting requirements are to include, but may not be limited to, verification of practice implementation and an implementation plan for the next growing season.

B. Application Requirements

The applicant shall submit a written application to the Commissioner on forms provided by the Department and will include:

(1) A description of the acreage for which compensation is being requested; the soil health best practices being applied and the acreage on which each will be applied; previous crop history, crop rotation plans, and other similar information deemed necessary by the Commissioner.

(2) Results from a current (< 3 years old) soil health test and a soil health management plan, or an attestation to work with MHSP staff to complete testing and management planning as part of grant recipient responsibilities.

(3) A map of the farm fields proposed to be included in the project area and a description of the healthy soils best practices that will be applied to each field.

C. Criteria for selection

All applicants that submit a completed application, meet eligibility requirements, and propose to implement approved healthy soils best practices qualify for an award. Tier 1 and Tier 2 awards will be offered to applicants in the order the application was received. Tier 3 awards will first be awarded to first-time Tier 3 applicants in the order those applications are received. If funding is available after first-time Tier 3 applicants are awarded, then repeat Tier 3 applicants will be awarded in the order their application was received. Awardees may re-apply to the program following the conclusion of their previous funding award. Previous participation does not guarantee future awards.

D. Payment Structure

Funding awards are tiered in value based on the number of times a farm operation is awarded. First-time awardees are eligible for Tier 1 awards and must implement at least one (1) healthy soils best practice. Second-time awardees are eligible for Tier 2 awards, which offer additional incentive for implementing a minimum of two (2) healthy soils best practices. All other awardees are eligible for Tier 3 awards, which offer additional incentive for implementing a minimum of three (3) healthy soils best practices. Award values are calculated for a single growing season as follows:

(1) Tier 1: a base payment of no less than $2,500 plus a per-acre rate. Tier 1 per-acre rates shall be offered at three levels with progressively higher rates paid for implementation of one (1), two (2), or three plus (3+) healthy soils best practices on the farmland.

(2) Tier 2: a base payment of no less than $1,250 plus a per-acre rate. Tier 2 per-acre rates shall be offered at two levels, with progressively higher rates for implementation of two (2) or three plus (3+) healthy soils best practices applied on the farmland. If a farm operation implements only one approved practice, it is eligible for the base payment only.

(3) Tier 3: a base payment of no less than $625 plus a per-acre rate. Tier 3 per-acre rates shall be offered at one level for implementation of at least three (3) healthy soils best practices on the farmland. If a farm operation implements one or two approved practices, it is eligible for the base payment only.

The Commissioner may use their discretion to determine per-acre rates up to a maximum of $200/acre. Rates will be described in each funding announcement and separate funding announcements will be made for each award tier. The farm operation must minimally maintain the number of healthy soils best practices initially cited in the application or otherwise provide reasoning for changes in their annual report. If a farm operation implements additional practices on the farmland during the period of time it is operating under a particular tier award, then that Farm Operation may request to receive a higher per-acre rate. Request for higher per-acre rate does not guarantee receipt of a higher per-acre rate.

01-001 C.M.R. ch. 35, § 4