Capital Equipment Assistance Program

The Capital Equipment Assistance Program (CEAP) is administered by the Vermont Agency of Agriculture, Food and Markets (VAAFM) to provide financial assistance for the purchase of innovative agricultural equipment that improves water quality, reduces farm runoff, mitigates greenhouse gas emissions, and supports cost-effective conservation practices. The grant is designed to support farms, nonprofit organizations, custom applicators, and research institutions implementing technologies and techniques that reduce environmental impacts of agricultural operations. Eligible equipment includes tools for precision agriculture, conservation tillage, cover cropping, liquid waste management, bedded pack composting, and feed management. These categories support better nutrient management, reduced soil disturbance, improved manure application practices, enhanced cover cropping, compost system improvements, and mitigation of silage leachate or feed overuse. The program prioritizes equipment with high conservation value, scalability, long-term usability, and potential for research benefit. Grant funds can be used for new or used equipment, though certain items (e.g., manure tankers, skid steers, full-width tillage tools) are ineligible. Funding levels differ by applicant type and equipment category. For most equipment, CEAP offers a 90% cost-share with category-specific caps, ranging from $25,000 to $150,000 per applicant. Custom applicators and nonprofit organizations are eligible for higher maximums in some categories. Applicants must provide a minimum 10% match, excluding shipping, freight, and travel costs. Applications for FY2026 must be submitted by November 1, 2025. The application process requires submission of the CEAP application form, a program questionnaire, and one or two quotes for the equipment. Feed management applications must include documentation such as site visit reports or a Whole Farm Nutrient Balance in collaboration with UVM Extension. Optional letters of support may be submitted to strengthen proposals. Grant agreements have a term of five years. During this time, recipients must use and maintain the equipment according to the original application and must report annually for the first three years. Required reporting includes usage logs, narrative reports, and annual acreage maps. VAAFM staff may also conduct 1–2 site visits during the grant term. Reporting supports program accountability and helps demonstrate the cost-effectiveness of conservation investments. The CEAP program prioritizes projects located in specific tactical basins such as Missisquoi Bay, Southern Lake Champlain, and Otter Creek, followed by other regions of the Lake Champlain Basin and the Connecticut and Hudson River watersheds. Priority is also given to new applicants, projects demonstrating innovation, and those with technical assistance support. Assistance is available through local conservation districts and the Water Quality Division at AGR.WaterQuality@vermont.gov or 802-522-4655.

Ensure all application parts are submitted together (application, questionnaire, quote). Field visits or coordination with UVM Extension may be required for certain equipment. Use maps and reporting templates provided.