Changing practices and implementing pollution controls can be expensive. The benefits of these measures are broad, but the cost is often borne by a limited number of parties. How can this cost be shared across the watershed that benefits from the changes? The Great Lakes Commission is testing a market-based approach in the Western Lake Erie basin* – stewardship credits.
“Many organizations and individuals are concerned about the health of Lake Erie. Harmful algal blooms have, in recent years, impacted local water supplies and upset the significant tourism economy. Stewardship credits are generated by agricultural producers who implement conservation practices to reduce the amount of nutrients (including phosphorus) leaving their fields and entering nearby waterways. The amount of nutrients reduced is translated into “credits” that can be purchased by “stewards.” Dollars invested in the purchase of stewardship credits pays for farmers’ efforts to reduce phosphorus contributions to waterways that flow into the Western Lake Erie Basin. Revenue from the sale of stewardship credits allows farmers to continue or increase those conservation efforts in the face of decreasing farm revenues. Stewards that buy credits can feel good knowing they are helping to improve water quality in Lake Erie.” source - Great Lakes Commission factsheet “How the Erie P Market Works for Stewardship”
The market for stewardship credits is just opening - the first purchase by an individual was made by LWV Upper Mississippi River Region’s chair, Gretchen Sabel, for her grandson Isaac’s eight birthday. Isaac lives with his family in the Sandusky River Basin in northwest Ohio, and will benefit from cleaner water as he grows up. Of course, an organization purchasing a large block of credits would have a lot more impact than this single purchase. You can learn more on the Great Lakes Commission’s Lake Erie P Credits page here and purchase credits directly by clicking here.
How do these stewardship credits work? This is a Credit Calculation Example Scenario that the Great Lakes Commission provides in the Framework for Water Quality Trading in the Western Lake Erie Basin (see full document here):
“Farmer Brown lives in Defiance County, Ohio where he owns and operates a 100-acre corn and soy bean farm. After hearing about the newly introduced Erie P Market, Farmer Brown decides to improve his field management practices and make some extra money. Working with the local conservation district, he designs and implements a conservation plan that includes: (1) no-till (2) 4R nutrient management (3) the installation of a filter strip along the down-slope boundary of his property, and (4) planting 50-acres of cover crops. Using regional climate data, the results of his Mehlich 3 Phosphorus tests, and other detailed knowledge of his farm’s characteristics, Farmer Brown calculates his Credits to be traded on the Erie P Market as follows:
As you can see, the purchase of Lake Erie P Stewardship Credits helps farmers directly implement changes to reduce the loss of phosphorus from their fields. By increasing the pool of capital available to make changes, groups and individuals can help be part of the pollution solution!
*Map of Western Lake Erie basin from Great Lakes Commission website:
|LWV Upper Mississippi River Region||