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Sand County Foundation

Explore the shift to performance-based, market-driven agricultural conservation strategies using ecosystem services to enhance environmental returns on investment. Understand the environmental consequences, costs, and farmer acceptance to calculate better investment strategies. Discover the agricultural causes of nitrogen runoff and prioritize investment for maximum impact.

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Sand County Foundation

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  1. When land does well for its owner, and the owner does well by his land; when both end up better by reason of their partnership, we have conservation. When one or the other grows poorer, we do not. - Aldo Leopold Sand County Foundation

  2. Use Ecosystem Services to Improve Environmental Return on Investment Shift to Performance Based, Market Driven Agricultural Conservation Strategies • Need to understand • Environmental consequence of change in practices • Costs of practices • Farmer acceptance Then can calculate better environmental investment strategies

  3. Agricultural Causes of Nitrogen Runoff 3 Key Functions Altered Nitrogen Discharge Increase Use of Synthetic Nitrogen Move Water Off Landscape Very Efficiently Shift From Forage and Small Grains To Expanded Large Grand Production

  4. Nitrogen Application

  5. Wetlands Loss

  6. Subsurface Agricultural Drainage

  7. Disconnect Riparian Functions

  8. Top 10% Nitrogen Contribution

  9. Groundwater Contamination

  10. How Are Farm Decisions Made? Don’t jeopardize future of the farm What can we do? what do we know how to do what do we have capability of doing • How do we stay in business • How do we maximize yield • Largely economic decisions Maybe good environmental management should help the economics

  11. US Corn Production For Ethanol Use Source USDA

  12. Markets Highly Volatile

  13. Fertilizer Prices

  14. Price of Ag Commodities Commodity Price Change Wheat + 304 % Corn + 170 % Soybeans + 155 % Fertilizer + 228 % April 2008 VS January 2000 National Agricultural Statistics Service, USDA

  15. So What do We Do? Becoming a Conservation Capitalist • We expect to pay for most things we use • We expect farmers to provide water quality for free* • Regulatory strategies are resisted and inefficient for not point source issues • How do we overcome impediments to more efficient conservation delivery? • * See Water as a Crop presentation

  16. Improving Environmental Management: • Shifts to Performance Based Incentives • Faster • Cheaper • Less Disruptive

  17. Pilot Use of Markets in Innovative Ways • Prioritize investments • Prioritize subsidies • Create trades between sectors • Get farmers in ecosystem service • business

  18. Conservation Delivery Highly Inefficient • Current Farm Bill provides $24 Billion for Conservation • Fund Distribution Strategy Designed largely in 1985 - does not target, focus on performance or use market principles • Taxpayers are not getting good value • Innovation is not encouraged • The result is higher costs & lower environmental quality

  19. Overcoming ImpedimentsCreates Performance Data A Comparative Analysis of the Environmental And EconomicPerformance of Management Alternatives • In other words • Which practices are most effective at environmental improvement (recognizing location variations) • What are the costs of various practices • What is the return on investment

  20. Prioritizing Investment Create Incentives for N Loss Reduction • Which practices • What location

  21. Management Options Source Reduction Sink Creation Change Crops

  22. Examples of Source Reduction • Nutrient Management Plans • Calibrate manure spreaders • Improving N application techniques • Moving animal concentrations out • of waterways • Use of N stabilizers

  23. Source Reduction:Nutrient Mgmt Plans • Soil Test • Determine Agronomic or Economic Need • Credit Manure • Credit Legumes

  24. Sink Creation • Wetlands Restoration • Floodplain Restoration • Drainage Management • BioReactors • Cover Crops

  25. Raised Water Table Drain Water Ditch Riser Boards (Adjustable) Sink: Drainage Management Water Level Control Structure Soil Surface Solid Pipe The water level control device is installed in the tile drain near the outlet and at various locations within the field depending on topography

  26. Sink: Bio Reactor

  27. Bio Reactor: Installation

  28. So What? • Demonstrate a variety of management practices in variety of locations • Assess farmer acceptance of practices • Assess environmental effect of each practice • Assess the cost of each practice • Evaluate cost effectiveness of various practices • In other words, ask the question where do we get a higher return on our environmental investment?

  29. Nitrogen Management PotentialDischarge Reductions • Agronomic Practices 20 - 30% • Cover Crops 10 - 40% • Drainage Management 20 - 50% • Bioreactors 20 - 40% • Bioreactors w/ Drainage Mgt. 50 - 80% • Wetlands 5 - 60% • Minimize drainage intensity 5 - 35% • (for replacement systems)

  30. Cost Effective Practices • Nutrient Planning $0.13/lb • Wetlands Restoration $0.10 - 0.90/lb • Manage Drainage $0.10 - 1.40/lb? • Bio Reactors $1.05 - 1.75lb • Cover Crops • Precision N Application Net Saving?

  31. Low Hanging Fruit • Agronomic practices What is the price? • Wetlands What is the price? • Drainage management • Design to meet production needs • Bio digesters What is the price?

  32. Sand County Foundation Alex Echols echols@conrod.com 703/660-2366 Brent Haglund bhaglund@sandcounty.net 608/663-4605 http://www.sandcounty.net

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