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BMP CHALLENGE and Water Quality Trading: Opportunities for Farmers, Advisors and Educators SM Thomas BMP CHALLENGE and Water Quality Trading: Opportunities for Farmers, Advisors and Educators SM Thomas Green, Ph. D. , C. C. A. , T. S. P. * IPM Institute of North America Inc. Harnessing the Power of the Marketplace to Improve Health, Environment and Economics 2004, 2005 EPA Pesticide Environmental Stewardship National Champion 2005 EPA Children’s Health Recognition Award Winner 2003 EPA Region V Recognition Award Winner www. bmpchallenge. org

Harnessing marketplace power… Communities Agriculture Check Strip Sixth International IPM Symposium BMP Strips Portland Harnessing marketplace power… Communities Agriculture Check Strip Sixth International IPM Symposium BMP Strips Portland OR, March 24 -25, 2009

Best management practices… EPA, National Academy of Sciences and more than 20 other studies Best management practices… EPA, National Academy of Sciences and more than 20 other studies identify ECONOMIC RISK as a major reason why farmers do not adopt BMPs. . “We’ve used a crop consultant in the past… …if he’s wrong, the cost of him being wrong is much more than the cost of that additional insecticide or herbicide. ” www. bmpchallenge. org

“EXTRA” is a RATIONAL DEFENSE Against economic uncertainty • Nutrient mgt is an uncertain “EXTRA” is a RATIONAL DEFENSE Against economic uncertainty • Nutrient mgt is an uncertain science - 1. 2# N/bu no longer • Nutrients may be lost if heavy spring rains occur • Bumper crop conditions may call for more nutrients www. bmpchallenge. org

2005 corn farmer survey • 700 farmers, each planting 850 acres of crops per 2005 corn farmer survey • 700 farmers, each planting 850 acres of crops per year on average • Some progress – 54% have reduced fertilizer over past five years, 18% by 15% or more • Enormous potential for basic and advanced practice adoption – – 16% do not credit N from soybeans 25% do not credit nutrients in manure 67% do not use variable rate 88% do not use in-season testing/application www. bmpchallenge. org

2005 corn farmer survey • 46% want to see proof before changing practices • 2005 corn farmer survey • 46% want to see proof before changing practices • 80% would be interested in reducing fertilizer rates if income were guaranteed ENTER THE… www. bmpchallenge. org

BMP CHALLENGE • How will BMPs perform in my field? • Risk-free opportunity to BMP CHALLENGE • How will BMPs perform in my field? • Risk-free opportunity to find out. Check Strip BMP Strips www. bmpchallenge. org

Applications • Nutrient management – N, P and/or K application rates • Enhanced nutrient Applications • Nutrient management – N, P and/or K application rates • Enhanced nutrient management • Conservation tillage • Corn rootworm IPM • Variable rate nutrient applications, split N applications, etc. ? • Guarantee value of trading credits. www. bmpchallenge. org

2006 – 2009 CIG Deliverables Minnesota • Training curriculum and support package re BMP 2006 – 2009 CIG Deliverables Minnesota • Training curriculum and support package re BMP CHALLENGE and WQ Credit Trading, twelve seminars – Initial delivery Jan 11, 2007 – Trading rules being developed • Three in-state professionals trained to deliver curriculum ongoing • Develop 10 point sources for trading • Plus BMP CHALLENGE on 34, 000 acres across 13 states www. bmpchallenge. org

Results 2002 - 2006 Nutrients • Avg. farmer benefit from BMP: ($0. 05)/a • Results 2002 - 2006 Nutrients • Avg. farmer benefit from BMP: ($0. 05)/a • Average fertilizer savings: 23% or 41# N/a • Cost for Nutrient BMP CHALLENGE: $18/a, or $0. 44/lb. Tillage • 2006, first year: 20 bu/a shortfall - $8. 97/acre savings in tillage costs - ($27. 03)/a average net return - Learning curve, weed management www. bmpchallenge. org

BMP CHALLENGE/CIG Partners • Agflex: Iowa corporation, “bank” for reserves to make payments to BMP CHALLENGE/CIG Partners • Agflex: Iowa corporation, “bank” for reserves to make payments to farmers • American Farmland Trust’s Agricultural Conservation Innovation Center • IPM Institute of North America • Kieser and Associates • Minnesota River Board • Thanks to The Nature Conservancy www. bmpchallenge. org

BIG THANKS to: Thomas Green, Ph. D, CCA, TSP IPM Institute of North America BIG THANKS to: Thomas Green, Ph. D, CCA, TSP IPM Institute of North America Madison WI, 608 232 -1528 ipmworks@ipminstitute. org Funders, Partners, Collaborators Agren, Inc. w American Farmland Trust w Altria Group Cannon River Watershed Partnership Chesapeake Bay Commission w City of Decatur (IL) Great Lakes Protection Fund IL Council on Best Management Practices w IL Dept. of Agriculture IA Farm Bureau Financial Services w IA Dept. of Economic Development IPM Institute of North America w Joyce Foundation w Kieser & Associates Le. Sueur County (MN) w Mc. Knight Foundation MN Department of Agriculture w MN Pollution Control Agency Minnesota River Board w National Fish and Wildlife Foundation National Foundation for IPM Education w Newcomer Consulting Ohio State Extension PA Dept of Agriculture w PA State Conservation Commission RM Hirsch Consulting w Seven Mile Creek Watershed Project w Team Ag US EPA w University of Wisconsin w USDA CSREES USDA Small Business Innovative Research Program USDA Natural Resources Conservation Service USDA Risk Management Agency Wisconsin Department of Natural Resources Partners Wanted! Photos courtesy USDA ARS Image Library www. ars. usda. gov/is/graphics/photos/ www. bmpchallenge. org