Agency of Agriculture requests $3 million for farm best-management grants to advance clean-water goals

The Vermont Agency of Agriculture, Food & Markets told a legislative committee on Feb. 19 that it seeks $3,000,000 in FY2026 capital funding for water-quality grants to support on‑farm best management practices (BMPs). Agency officials said the grants are used to design and construct farm infrastructure — manure handling, barnyard protections, riparian buffers and equipment — to reduce phosphorus and other pollutants reaching surface waters.

Laura DiPietro, Director of Water Quality for the Agency of Agriculture, said the Clean Water Fund Board recommended $3,000,000 for FY2026. “These are brick‑and‑mortar type practices,” DiPietro told the committee, explaining state support helps farms meet upgraded regulatory requirements and access other funding. She said the agency previously received $2,750,000 for water-quality grants over two years.

Nina Gage, Assistant Director of the Water Quality Division, summarized program results and metrics and tied the funding request to broader statutory obligations. “In fiscal 2024 we estimate 54.7 metric tons of phosphorus were reduced from entering Lake Champlain,” she said, adding that roughly 87% of that estimated reduction came from the agricultural sector and that the state’s overall TMDL goal for Lake Champlain is a reduction of about 212 metric tons per year. Gage said the agency’s BMP and related programs account for a substantial share of measured progress.

Committee members heard program details: BMP grants provide state match for federal NRCS (Natural Resources Conservation Service) projects and fund state‑only projects where NRCS funds are not available. Typical projects include manure storage and transfer systems, heavy‑use area protections (improved barnyard surfaces), silage leachate collection and treatment, riparian buffers through the Conservation Reserve Enhancement Program (CREP), pasture fencing paired with alternative watering systems, and specialized equipment such as grassland shallow-slot injection toolbars that reduce surface runoff when manure is applied.

The agency reported performance metrics for the BMP program: an average award of about $73,000, an average project timeframe from contract to payment of roughly 7.2 months, and an average annual caseload near 53 projects in recent years. In the last fiscal year the agency reported 55 active projects and said about 20 otherwise-eligible applications were deferred because of insufficient funds. DiPietro and Gage said they expect a full application round in April–May and that construction typically occurs the following season after design work is completed.

On funding context, the agency said its proposed overall budget is about $13,000,000 (all‑sources) with $3,000,000 in capital and approximately $10,000,000 from other clean‑water revenues; matching funds commonly include federal USDA/NRCS dollars plus farmer contributions. DiPietro noted uncertainty in federal funding programs and emphasized the importance of stable state funds to keep projects moving when federal sources are unavailable or exhausted.

Committee members asked about demand and prioritization. The agency said it uses technical reviews and prioritization to allocate limited funds and that many projects require blended funding across several sources. The committee’s small subcommittee on reallocation of unencumbered bonds plans additional follow-up with the agency to identify possible near‑term reallocations. No formal appropriation was approved at the hearing.

Next steps: the committee will continue hearings on clean-water funding, will consider subcommittee recommendations on any reallocation of unencumbered funds, and expects further testimony on municipal pollution grants and revolving loan programs in upcoming sessions.