1. www.bmpchallenge.org BMP CHALLENGE SM and Water Quality Trading: Opportunities for Farmers, Advisors and Educators 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

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

3. www.bmpchallenge.org 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.”

4. www.bmpchallenge.org “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

5. www.bmpchallenge.org 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

6. www.bmpchallenge.org 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…

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

8. www.bmpchallenge.org 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.

9. www.bmpchallenge.org 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

10. www.bmpchallenge.org 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

11. www.bmpchallenge.org 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

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