Subchapter C. SUSTAINABLE AGRICULTURE GRANT PROGRAMS AND ALTERNATIVE CROP GRANT PROGRAMS
Sec.
130c.31. Objectives.
130c.32. Funding.
130c.33. Amount of grant.
130c.34. General conditions.
130c.35. Submission of application.
130c.36. Processing of application.
130c.37. Applicant eligibility.
130c.38. Review of a grant application.
130c.39. Eligible uses.§ 130c.31. Objectives.
This subchapter establishes the requirements and procedures of the Program and the Alternative Crop Grant Program, under which an applicant may receive grants that enable it to implement practices and develop programs which emphasize sustainable agriculture and the use of alternative crops to promote sustainable agriculture in this Commonwealth.
§ 130c.32. Funding.
Sustainable agriculture grants and alternative crop grants will be made to the extent funds are made available. The revenues and appropriations will be deposited in the Fund. All costs, except administrative expenses, related to the sustainable agriculture program will be paid from the Fund.
§ 130c.33. Amount of grant.
Grants may not exceed $25,000 except as provided in this subchapter. An additional amount of up to $25,000 may be granted if the applicant matches that additional amount dollar for dollar so that a single grant may not exceed $50,000 in 1 calendar year.
§ 130c.34. General conditions.
(a) Grant agreement. The applicant shall sign a grant agreement setting forth the term and amount of the grant and other terms or conditions as the Department may reasonably require.
(b) Verification. Within 3 months of the project completion date specified in the grant agreement, the applicant shall submit to the Department a final report which includes written receipts, records and any other pertinent documentation evidencing the total amount of the costs incurred and expenditures associated with the project. At the same time, the applicant shall also submit a narrative report describing the effectiveness of the project, the results obtained, the experience gained and the personal knowledge acquired.
(c) Failure to verify. If the required receipts, records and documentation are not submitted within the 3-month period or a portion of grant proceeds are unaccounted for, the Secretary may demand the applicant repay the entire principal balance of the grant or a lesser amount and interest incurred to date. The interest rate will be calculated using simple interest at the percentage rate equal to the Federal Reserve discount rate at the time the grant was made. Payment shall be due within 60 days of the written demand.
(d) Default. A recipient who fails to abide by the terms of the act, the grant agreement or this chapter shall be in default. When a grant recipient defaults, the Department may seek recovery of the grant funds as delineated in § 130c.8 (relating to right of recovery). A default may be waived by the Secretary, after consultation with the Board, in the event of a physical disability suffered by the recipient or other extenuating circumstances.
§ 130c.35. Submission of application.
(a) Obtaining an application/deadline. An applicant desiring to be considered for a grant under this chapter shall submit to the Board, on a form prepared by the Board, an application for a grant. The completed application shall contain the information requested by the Board. Applications shall be postmarked by July 31 of each year. Grant applications may be obtained from:
Pennsylvania Department of Agriculture
Bureau of Plant Industry
2301 North Cameron Street
Harrisburg, PA 17110-9408
Telephone number: (717) 787-4843
(b) Limitations. An applicant may submit applications, in the same year, under both the Sustainable Agriculture Grant Program and the Alternative Crop Grant Program. An applicant will not be awarded more than one grant in each calendar year and an applicant already possessing a grant will not be eligible to apply for any other grant under this chapter until the applicant’s current grant is completed and the proper verification has been provided to the Board.
§ 130c.36. Processing of application.
(a) Executive Director. Upon receipt of an application for a sustainable agriculture grant or alternative crop grant and the required supporting documentation, the Executive Director will review this information for completeness and accuracy and submit it to the Board. As set forth in § 130c.6 (relating to notice of disposition of application), the Board has 90 days to review and take action on an application. If the Executive Director determines the application is incomplete or inaccurate, final processing of the application may be discontinued and the Board will send a letter of rejection to the applicant or additional data may be requested. If additional data is requested, the Executive Director will notify the applicant of the additional data needed and the 30-day time period for response. Processing of the application will cease and the 90-day review period, set forth in § 130c.6, will be tolled during the 30-day response period until the applicant supplies the requested data. If additional data has been requested, the Executive Director may terminate the processing of the application when the additional data is not supplied within 30 days of a written request.
(b) Board. The Board will review all complete applications and supporting documentation and will have the power to accept, accept with special conditions or reject applications and issue grants in accordance with the general considerations and eligibility criteria of the act and this chapter.
Cross References This section cited in 7 Pa. Code § 130c.6 (relating to notice of disposition of application).
§ 130c.37. Applicant eligibility.
(a) Individuals. To be eligible for a grant under this chapter, the applicant, if an individual, shall be:
(1) A resident of this Commonwealth or show sufficient evidence that he intends to become a resident.
(2) An active resident operator or resident manager of the farm.
(3) Sufficiently educated, trained or experienced to carry out the sustainable agriculture or alternative crop project proposed in the grant application and guarantee he will participate in the project for the duration of the grant period.
(4) Able to prove and document that the farmland or farm enterprise for which the grant is acquired is located in this Commonwealth.
(5) Able to demonstrate the proceeds of the grant will be used for eligible sustainable agriculture or alternative crop purposes as defined in the act and this chapter and that all grant proceeds will be used exclusively for sustainable agriculture or alternative crop purposes in Commonwealth farming operations only.
(b) Family farm partnership. To be eligible for a grant under this chapter, the applicant, if a family farm partnership, the applicant’s principle operating or managing partners shall:
(1) Be residents of this Commonwealth or demonstrate they intend to become residents.
(2) Have no more than three unrelated members.
(3) Have at least one member residing on or actively operating or managing the farm.
(4) Demonstrate the applicant or the principal operating or managing partners thereof have sufficient education, training or experience to carry out the sustainable agriculture or alternative crop project proposed in the grant application and guarantee he will participate in the project for the duration of the grant period.
(5) Be able to prove and document that the farmland or farm enterprise for which the grant is acquired is located in this Commonwealth.
(6) Be able to demonstrate the proceeds of the grant will be used for eligible sustainable agriculture or alternative crop purposes as defined in the act and this chapter and that all grant proceeds will be used exclusively for sustainable agriculture or alternative crop purposes in Commonwealth farming operations only.
(c) Family farm corporation. To be eligible for a grant under this chapter, the applicant, if a family farm corporation, shall meet the following requirements:
(1) The family farm corporation shall be incorporated or registered to do business in this Commonwealth.
(2) The principal operating or managing members or shareholders of the family farm corporation shall be residents of this Commonwealth or show sufficient evidence that they intend to become residents.
(3) At least one of the majority stockholders of the family farm corporation shall reside on or actively operate or manage the farm.
(4) None of the shareholders of the family farm corporation may be corporations.
(5) The applicant or the principal operating or managing members or shareholders of the family farm corporation shall have sufficient education, training or experience to carry out the sustainable agriculture or alternative crop project proposed in the grant application and shall guarantee the family farm corporation will participate in the project for the duration of the grant period.
(6) The family farm corporation shall demonstrate that the farmland or farm enterprise for which the grant is acquired, is located in this Commonwealth.
(7) The family farm corporation shall be able to demonstrate the proceeds of the grant will be used for eligible sustainable agriculture or alternative crop purposes as defined in the act and this chapter and that all grant proceeds will be used exclusively for sustainable agriculture or alternative crop purposes in Commonwealth farming operations only.
(d) Corporate farm. To be eligible for a grant under this chapter, the applicant, if a corporate farm, shall meet the following requirements:
(1) The corporate farm shall be incorporated or registered to do business in this Commonwealth.
(2) The principal operating or managing members or shareholders of the corporate farm shall have sufficient education, training or experience to carry out the sustainable agriculture or alternative crop project proposed in the grant application and shall guarantee the corporation will participate in the project for the duration of the grant agreement.
(3) The corporate farm shall demonstrate that the farm enterprise owns or leases farmland in this Commonwealth.
(4) The corporate farm shall be able to demonstrate the proceeds of the grant will be used for eligible sustainable agriculture or alternative crop purposes as defined in the act and this chapter and that all grant proceeds will be used exclusively for sustainable agriculture or alternative crop purposes in Commonwealth farming operations only.
(e) Nonprofit educational institution. To be eligible for a grant under this chapter, the applicant, if a nonprofit educational institution, shall:
(1) Qualify as a nonprofit organization under section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C.A. § 501(c)).
(2) Be a State-owned or State-related college or university in this Commonwealth or any nonprofit organization, association or group in this Commonwealth.
(3) Have experience in research or education in sustainable agriculture practices.
(4) Have demonstrated a capacity to conduct agricultural research or education programs.
Cross References This section cited in 7 Pa. Code § 130c.38 (relating to review of a grant application).
§ 130c.38. Review of a grant application.
(a) Evaluation. The Board will evaluate the application based on the applicant’s eligibility as set forth in § 130c.37 (relating to applicant eligibility).
(b) Ranking. No single factor will be paramount. In rendering a decision, the Board will rank the application based on the following criteria:
(1) Financial responsibility. Financial responsibility reflecting the ability of the applicant to meet and satisfy all debt service as it becomes due and payable, continue farm operations and protect the Department against undue risk. The applicant’s cash flow history, total assets controlled, equity owned, contingent liabilities and history of earnings to date are significant measures of financial responsibility.
(2) Applicant background. The relevant criminal and credit history and ratings of the applicant as determined from credit reporting services and other sources.
(3) Tax obligations. The payment to date of all tax obligations due and owing by the applicant to the Commonwealth or any political subdivisions thereof.
(4) Projected use. The manner in which grant proceeds will be utilized in furthering sustainable agriculture in this Commonwealth. This encompasses the goals of the project, its impact on agriculture, the environment and society, its ability to increase farm profitability and productivity, and the project’s potential for success.
(5) Capital needs (amount of the grant). The Board will look at the capital needs of the applicant in light of available funds.
(6) Environment. The environmental benefit.
(7) Profitability. The potential impact on farm profitability.
(8) Technology. The applicability of the techniques or technology to other farm enterprises.
(9) Effectiveness. The effectiveness of the project as a demonstration, where applicable.
(10) Farming practices. The intent to use practices that would improve soil fertility, lower the cost of production, cause the optimum and environmentally compatible use of off-farm inputs, such as chemical or synthetic fertilizers or pesticides, or otherwise promote sustainable agriculture. These practices are further explained and defined in § 130c.39 (relating to eligible uses).
(c) Discretion. The Board may exercise its judgment in reviewing applications and in determining the amount of each grant so that, when possible, the widest audience becomes acquainted with the principles of sustainable agriculture. This discretion may be exercised to assure grant funds are distributed to the maximum number of applicants and dispersed throughout this Commonwealth.
§ 130c.39. Eligible uses.
(a) Grant proceeds. Proceeds from a grant made under this chapter shall be used by the grant recipient for the practice or promotion of sustainable agriculture or for research or educational programs pertaining to the development of sustainable agriculture, or to adopt practices that emphasize the use of alternative crops. Sustainable agriculture practices include agricultural practices which:
(1) Are ecologically beneficial.
(2) Improve and ensure the soil and water quality for future generations.
(3) Enhance environmental quality and the natural resource base upon which the agricultural economy depends.
(4) Make the most efficient use of nonrenewable resources.
(5) Integrate natural biological cycles and controls, such as planting cover crops to defend against insects and weeds, using mechanical tillage to control weeds and relying on natural systems, such as biological controls and natural predators.
(6) Ensure the optimum and environmentally compatible use of or eliminate the need for the purchase of off-farm inputs such as chemical or synthetic fertilizers and pesticides.
(7) Make the best use of on-farm labor and resources, such as using animal and plant manure to enrich soil.
(8) Sustain the economic viability of farm operations, by implementing practices which lower production costs.
(9) Enhance the quality of life for farmers and society.
(10) Satisfy human food and fiber needs.
(11) Emphasize planting a diverse array of crops and the production of alternative crops.
(12) Identify agricultural practices that maintain productivity and minimize environmental and farmland degradation.
(13) Develop, integrate and coordinate field experiments and on-farm research and educational efforts related to the practice of sustainable agriculture.
(14) Develop, integrate and coordinate new techniques and technologies which advance the field of sustainable agriculture.
(b) Ineligible use of grant proceeds. Grant proceeds may not be used for any of the following purposes:
(1) To refinance a portion of the total project cost or any other existing loan or debt.
(2) To finance, fund or to use in a project outside the geographic boundaries of this Commonwealth.
(3) To purchase off-farm inputs, such as chemical or synthetic fertilizers and pesticides.
(4) To fund any educational or promotional program which is not for the sole purpose of advancing the practice of sustainable agriculture.
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