Vermont Pay for Performance Grant Program

The Vermont Pay for Performance Program is administered by the Water Quality Division of the Vermont Agency of Agriculture, Food and Markets, a state agency responsible for supporting agricultural viability while protecting environmental resources. The program reflects Vermont’s broader policy commitment to improving water quality, particularly by reducing phosphorus runoff from agricultural lands that contributes to water pollution in lakes and rivers. Unlike traditional conservation funding models that primarily reimburse farmers for implementing practices, this program introduces a performance-based framework that compensates farmers for measurable environmental outcomes. The primary purpose of the program is to incentivize Vermont farmers to reduce phosphorus losses from their agricultural operations through improved land management practices. The program leverages a tool called FarmPREP, a web-based application that integrates farm management data with agronomic and hydrologic modeling. This system allows participants to quantify phosphorus reductions at the field and whole-farm level, enabling payments to be tied directly to environmental performance rather than solely to practice adoption. Funding under the program is structured in two phases. In Phase 1, referred to as the Planning phase, participants receive compensation for entering farm data into FarmPREP and for implementing eligible conservation practices. Specifically, farmers can receive a data entry payment of 50 dollars per field, capped at 3,000 dollars, and a practice payment of up to 10,000 dollars aligned with existing Farm Agronomic Practices rates. In Phase 2, known as the Implementation phase, participants continue to receive these payments and become eligible for additional compensation based on quantified phosphorus reductions, calculated as average pounds of phosphorus loss per acre. Eligibility is limited to farms operating within Vermont that meet the definition of a farm under the Required Agricultural Practices regulations. Eligible applicants must manage cropland, hay land, or pasture and must maintain an up-to-date Nutrient Management Plan at the time of application. This plan must include recent soil and manure testing data, which are essential inputs for calculating environmental performance. Farms participating in other conservation payment programs may apply, but they face restrictions on receiving overlapping payments, particularly during the first year of participation. The application process requires submission through an online portal and includes documentation verifying compliance with nutrient management requirements. Applicants must upload evidence of recent manure testing during the application and will be required to submit soil tests and a full Nutrient Management Plan after acceptance. Farms with pasture operations must also provide a grazing plan. The application period opens on June 1, 2026, and closes at 11:59 PM on July 15, 2026, with notifications of acceptance expected by August 31, 2026. Applications are reviewed competitively, with priority given to farms demonstrating strong nutrient management practices, high levels of conservation practice adoption, and a commitment to maintaining accurate and up-to-date records. Additional consideration is given to farms located in areas with high phosphorus reduction needs, those investing their own resources into conservation practices, and those identified as historically underserved producers. The program also values participants who are willing to engage with the innovative and evolving nature of the FarmPREP system and contribute to data-driven decision-making in agriculture.

Maintain up to date nutrient management records and tests; demonstrate strong conservation practice adoption; ensure accurate and complete documentation; prioritize participation in high impact phosphorus reduction areas