1. Brief Overview of MDA’s Non- Point Program and Midwest Fertilizer Fees Bruce Montgomery MN Department of Agriculture

2. MDA’s Non-Point Groundwater Program Who are we? We are a small team of Agronomists/Soil Scientists responsible for responding in areas of the state where groundwater resources have been impacted by ag-chemical inputs (primarily nutrients) from non-point activities. Mission: Assist agricultural communities in achieving their water quality goals by providing cost effective response strategies; serve as liaison to the impacted producers by providing educational outreach, technical assistance, cost sharing opportunities, assessment of BMP effectiveness & adoption rates, and developing innovative partnerships

3. Legislative Foundation Chap. 326, Art. 6, Sec. 33, Sub. 2b (Session Law) –Nitrogen Fertilizer Task Force –NFMP – prevention, evaluation & mitigation of nonpoint source nitrogen fertilizer –Finalized August 1990 Minn. Stat. § 103H –Establish Agricultural Best Management Practices (to include demonstrations)

4. Summary of Nitrogen Fertilizer Management Plan Process Adoption GOOD Adoption POOR Adoption POOR Effectiveness GOOD Effectiveness POOR Rule Writing: Water Resource Protection Requirements Re-evaluate Appropriateness of BMPs Modify BMP Promotion Continue BMP Promotion Effectiveness POOR Adoption GOOD Effectiveness GOOD 3 Phases: BMP Promotion, Evaluation, Response

5. Percentage of wells exceeding 3 mg/L. MDH County Well Index nitrate results summarized by agroecoregion. (Map courtesy of Dr. David Mulla, UM) Regions of Minnesota Where Nitrates are Commonly Found in Groundwater

6. St. Peter Source Water Protection Area 10 mg/L Health Standard

7. Community Water Suppliers Currently Responding to Nitrate Problems Lincoln Pipestone Rural Water System St. Peter Perham Cold Spring Edgerton, Luverne, Adrian, Fulda Hastings Park Rapids

8. Irrigators in the Perham’s Source Water Protection Area Responded to Water Quality Challenges!

9. Perham Case Study

10. Changes in MN Tonnage Fees Since 1989 (Not Including “Cleanup” Programs) Groundwater Protection Act was passed Fee increase proposed by MDA approved 2004-05 Session

11. MDA Staffing Projections-Responding to Nitrate Issues using Fertilizer Funds 2005-2007 Central Sands- Currently staffed Mississippi Corridor- Currently staffed part- time SE Karst- One FTE needed for this region. SW –One FTE needed for this region

12. Current Midwest Fertilizer Tonnage Fees Note that these figures includes the $0.15 increase to MDA starting 7/05

13. Current Midwest Tonnage & Research Fertilizer Fees Note that these figures includes the $0.15 increase to MDA starting 7/05

14. Helpful Conversion: Every 10 cent increase in Minnesota’s tonnage fees translates into $200,000 of revenue.

15. Current Fertilizer Tonnage Fees Including “Basic”, Research, and “Cleanup”

16. Cost per Acre of Cropland Including Basic Fees, Research and “Clean-Up” Type Programs

18. Grain Corn (Millions of Bushels) Nitrogen Use (Tons *1,000) Est. Nitrogen Sales Applied to Grain Corn 1988 Drought 1993 Floods Minnesota Corn Production and Nitrogen Fertilizer Use 1986-2004 Production

19. Minnesota’s Nitrogen BMP Design Statewide Special Situations Regional

20. Examples of States with Research and/or Educational Fertilizer Check-Off Programs WisconsinEstablished in 1978 IowaEstablished in 1987 IllinoisEstablished in 1990 CaliforniaEstablished in 1990 OklahomaEstablished in 1989 Oregon Missouri Michigan

21. Midwest Research Fertilizer Funds (Total Revenue Generated) Currently MN does not have check off program Fee on N Fertilizer provides $700,000 annually to Iowa’s Leopold Center WI Fertilizer Research(1/3), DNR (1/3), and Nutrient & Pest Management (Extension) (1/3) Illinois Fertilizer and Education Council distributes over $450,000 annually

22. Wisconsin Fertilizer Fees fund a variety of programs

23. Considerations in Designing a Fertilizer Check-Off Program Will the program fund research, outreach or both? The Board …Who and How? Governing Rules? The Research Review Process? Peer Review? Who can compete for the funds? Land Grants? Agencies? Commodity Groups?

24. Possible Discussion Topics at Future Ag Nutrient Task Force Meetings How are Fertilizer Check-Off Programs in other states structured? Additional details and examples of how MDA responds to areas of Minnesota impacted by groundwater problems. What other information does the Task Force need?

25. Fertilizer Product Sold in Upper Midwest States 1990-2004