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The unique benefit of impact fees

The agriculture and energy industries have worked hand-in-hand to fuel and feed Pennsylvanians for generations. Access to affordable energy, made possible by Pennsylvania’s natural gas production leadership, keeps operating costs low. Natural gas is also key to producing ammonia, one of the main ingredients in fertilizer.

Royalties to landowners have been used to change the trajectory of local farming operations. With these added funds, businesses can make equipment upgrades, expand operations, preserve land, and provide more for employees. Particularly with the effects of inflation and supply chain constraints, agriculture operations would be less prosperous if it weren’t for shale development – threatening food security for millions.

Another key revenue stream, the impact fee (or tax), on production also provides a boon to local family farm businesses – including the one I operate, Foxdale Farms, which has been my family’s business for four generations.

Revenue generated by Pennsylvania’s natural gas impact fees hit a record this year, totaling $279 million. Its unique structure ensures residents in all four corners of the state benefit from the shale resources lying below, but a larger share is for county and municipal governments in core producing regions. Lycoming County, which is the 5th largest producing county in the state, received nearly $5 million this year that’ll be used for things ranging from infrastructure upgrades to emergency response programs and, importantly, farmland preservation.

This unique funding system allows the local governments themselves – rather than politicians in Harrisburg – make the decision of where to invest that’s best for the community. Unfortunately, these benefits were seemingly ignored in a recent letter to the editor (Energy Forum Followup, Aug. 15).

If we want to progress as a state, the answer isn’t layering more taxes on an industry so vital to the place we call home. The answer is finding new ways to continue using this resource we’re blessed with to move our state and nation forward.

Simply put, modifying Pennsylvania’s working impact fee structure will not only put the Commonwealth’s energy independence at risk, but could also have devastating impacts on food access and local agriculture.

MATTHEW HENDERSON

Mill Creek Township

Submitted by Virtual Newsroom

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