Featured Article (February 2001)

State Subsidy Can Pay for 75% Of Your Fencing And Water System Costs

If you've looked at the price of fencing lately you know that it can cost a fortune just to fence in a paddock. At $5.00 a foot for oak board fencing, you can do the math to figure out that it's either the fencing or that trip to Europe you've been planning for this summer. But do I have news for you! You can not only fence your property but also go on that long awaited trip. Here's how.

In 1987 the Virginia Department of Conservation and Recreation established the Virginia Agricultural Best Management Practices (BMPs) Cost-Share Program. The Program provides funds to help install conservation practices that protect water and make farms more productive. The amount of funding varies by Soil and Water Conservation District (SWCDs). There are 47 SWCDs in the State. The amount of funding for each District depends on the need for water quality control. For example, Fauquier County is located in the John Marshall Soil and Water Conservation District. Since the program's inception through June 30, 2000, the John Marshall SWCD has paid Fauquier County landowners more than $1.8 million to install conservation practices. In fiscal year 2000 (July - June) over $400,000 was paid to 54 landowners.

Qualifications for Cost-Sharing Program

You must be a landowner with property having a water quality problem. A problem can be defined as animals having access to open water (streams, ponds, etc.). Animals must be present on your property. The program is not a preventative one, but a retroactive one. Animals are defined as horses, cows, sheep, goats, emus. There is a federally funded program where horses aren't considered livestock and, therefore, do not qualify. But this program is strictly State funded and horses do qualify.

Cost Share Program Process

First, call your SWCD representative for an initial visit to your property to determine if a water quality problem exists. To view a map showing Virginia's Soil and Water Conservation Districts go to: www.dcr.state.va.us/sw/swcdlist.htm#map. Hit your back button to return to this page.

Second, once a water quality problem is determined, a cost-effective solution will be established based on your needs. As long as your horses have unlimited access to ground water, you will qualify for the program.

Third, sign up for cost share assistance. This is accomplished by filling out a green form with your name and address, program year, phone number, Social Security or Tax ID number, and County in which property is located. That's it. The title of the form "Virginia Agricultural BMP Cost-Share & Tax Credit Request Form" takes longer to say than to complete.

Fourth, your SWCD representative will develop a farm conservation plan for the practice to be installed on your property. Thus, the representative will mark off the amount of linear feet that run along streams, creeks and ponds. This is where your fencing will be installed to prohibit livestock access. This program does not include cost sharing of perimeter fencing unless there is open, accessible water present on your property's borders.

Additionally, the State provides funding on a cost-share basis for alternative water sources for your livestock as in the development of wells, water pipelines for wells and installation of water troughs.

Fifth, landowner reviews and signs conservation plan.

Sixth, District employees propose an estimated cost for the plan. The cost share rates are based on this estimated cost. The most an individual may receive is $50,000. In any case, the state cost-share payment will not exceed 75 percent of the total eligible costs. Below is an example of a cost share estimate:

Of the total amount, the State will pay for 75% of the total or $7,612.50. There are pre-established maximum amounts allowable for fencing, pipeline, wells, land clearing, etc. For example, with fencing, the State pays up to 75% of $3/foot. You can install any kind of fencing providing it meets a minimum standard, which is 3-strand barbwire. The State allows 75% of $1200 for heated water troughs and 75% of $2.25/ft. for pipelines.

Seventh, District employees present the practice proposal and farm conservation plan to the District's Board of Directors for approval. Landowners are then notified of the Board's decision and if the proposal is approved, the landowner must sign a letter of agreement.

Other Caveats

If the estimate is over $25,000, the landowner must obtain estimates from at least 3 contractors. The landowner is responsible for finding and paying the contractor. The landowner submits the bills to the District at the time of completion. The bill is reviewed prior to the issuing of the reimbursement check. Thus the landowner must be in a financial position to pay for the practice and wait for reimbursement.

Landowner's Obligations after Reimbursement

The property owner must sign a certification committing to maintain the practice for the lifespan of the installed system. In the case of fencing and water systems, the lifespan is typically 10 years. The landowner must also give access to District personnel to spot-check the system for its lifespan. After 10 years, the district encourages landowners to continue its maintenance, but the property owner is no longer under any obligation to do so.

Another big benefit for the pocket book

There's a 25% state tax credit on the monies the landowner expends. In the above example, the landowner paid out of pocket expenses of $2,537.50 on a $10,150 practice. Thus, the landowner can take a state tax credit of $634.38 or 25% of the $2,537.50.

What's the downside to all of this? You tell me! I'm packing my bags for Paris. Au Revoir!

For more information contact the Virginia Department of Conservation and Recreation, (804) 786-2064 or your local SWCD.