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A New Revenue Source for Virginia Farmers Reduces Erosion and Improves Water Quality in the Chesapeake Bay Watershed

Posted by Kate Zook, Program Analyst, USDA Office of Environmental Markets, Office of the Chief Economist in Conservation
Dec 16, 2014
Agriculture Secretary Tom Vilsack speaking at a press conference in Fairfax, VA. USDA photo by David Kosling.
Agriculture Secretary Tom Vilsack speaking at a press conference in Fairfax, VA. USDA photo by David Kosling.

USDA has a long history of helping farmers, ranchers and forest landowners maintain their bottom line while improving soil health and reducing runoff into streams and rivers.  For nearly 80 years, USDA has offered funding and technical assistance for farmers to implement conservation practices through the conservation title of the Farm Bill. In recent years, however, USDA has also supported new, innovative approaches to voluntary, private lands conservation.

An announcement today by USDA Secretary Tom Vilsack, Virginia Governor Terry McAuliffe, and Administrator Gina McCarthy of the Environmental Protection Agency (EPA) in northern Virginia highlights an innovative approach called water quality trading. Farmers like John Harrison of Appomattox County are taking advantage of private investments to implement conservation practices on their land. These practices help reduce erosion and nutrient runoff into local bodies of water, generating nutrient credits that can then be sold to regulated entities looking to offset nutrient losses for compliance purposes.

In this case, the Virginia Department of Transportation (VDOT) purchased phosphorous credits to offset water quality impacts from road construction. The offset credits have permitted the completion of more than 40 small road construction projects that improve traffic safety and flow by adding turn lanes, clover leafs, and small connectors, and repairing approaches to aging bridges. Compared to traditional engineered practices, the offset credits provide greater water quality benefits for up to half of the costs of installation and long-term maintenance.

Agriculture Secretary Tom Vilsack (left) participates in a press conference with Commonwealth of Virginia Governor Terry McAuliffe. USDA photo by David Kosling.
Agriculture Secretary Tom Vilsack (left) participates in a press conference with Commonwealth of Virginia Governor Terry McAuliffe. USDA photo by David Kosling.

“It’s a first step at cleaning up rivers and the Chesapeake Bay, and it creates another revenue stream for us as well,” said Harrison. Mr. Harrison appears in a USDA video explaining the project and the benefits realized on his farm.

The project was the result of collaboration between the Virginia Department of Transportation (VDOT) and the Virginia Department of Environmental Quality, with support from USDA, the Federal Highway Administration and EPA.

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy speaking at a press conference. USDA photo by David Kosling.
U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy speaking at a press conference. USDA photo by David Kosling.

“USDA applauds the State of Virginia for showing leadership in purchasing water quality credits,” said Agriculture Secretary Tom Vilsack. “Efforts like these provide new and additional income streams for farmers and ranchers, while improving water quality and meeting Virginia’s regulatory needs.”

USDA has provided funding and technical support for Virginia’s water quality trading program through its Conservation Innovation Grants program.

Category/Topic: Conservation