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Forestry Incentives Program

Published on AidPage by IDILOGIC on Jun 24, 2005

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Assistance considerations...

Length and Time Phasing of Assistance

The Forestry Incentives Program is based on annual cost-share agreements. There may be certain restrictions on time limits on certain practices to be performed. Cost- shares are paid when the practice is performed. The assistance is awarded by performance.

Formula and Matching Requirements

Essential factors used to allocate funds to States are based on: (1)the acreage of private commercial forest land; (2) the potential productivity of such land; (3) the number of eligible owners in each State; (4) the need for reforestation; and (5) the enhancement of other forest resources. Cost- shares under Forestry Incentives Program are limited to not more than 65 percent of the total cost.

Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.