Water Quality Trading in the Chesapeake Bay: Partnerships for Success

Posted by Ann Mills, Acting Under Secretary for Natural Resources & Environment, on June 11, 2013 at 10:25 AM

Water quality improvements in the Chesapeake Bay benefit the many species of wildlife that call it home.

The Chesapeake Bay Watershed, the largest estuary in North America, covers 64,000 square miles and includes more than 150 rivers and streams that drain into the bay. Roughly one quarter of the land in the watershed is used for agricultural production, and agricultural practices can affect the health of those rivers and streams, and ultimately the bay itself.

While the health of the Chesapeake Bay has improved since the 1970s, excess nutrients and sediment continue to adversely affect water quality in local rivers and streams, which contributes to impaired water quality in the bay.

USDA’s Natural Resources Conservation Service is working with several agencies and organizations to test innovative water quality trading tools that will help improve the bay’s water quality, benefiting the more than 300 species of fish, shellfish and crab, and many other wildlife that call the Chesapeake Bay home.

In 2012, NRCS awarded Conservation Innovation Grants (CIG) to 12 entities to help develop water quality trading programs; five of these recipients are in the Chesapeake Bay Watershed.

USDA is excited about water quality trading’s potential to achieve the nutrient reductions necessary to improve water quality at a lower cost than regulation alone. For example, a wastewater treatment plant could purchase a nutrient credit rather than facing higher compliance costs if structural improvements are required on site. This is advantageous because it saves regulated industries money, and can provide additional income for the agricultural community by supporting adoption of conservation practices that reduce nutrient runoff.

The Chesapeake Bay grant recipients are the Alliance for the Chesapeake Bay; the borough ofChambersburg, Penn.; the Chesapeake Bay Foundation; the Virginia Department of Conservation and Recreation; and the Maryland Department of Agriculture.

NRCS recently met with these organizations and agencies to share expertise and identify common obstacles and priorities. During the meeting, NRCS briefed recipients on trading tools and policies, and invited groups working on water quality trading programs across the country to share ideas. The Chesapeake Bay CIG awardees will continue to meet throughout the duration of their projects to share updates and collaborate on innovative solutions to water quality challenges in the Chesapeake Bay.

These grants are part of the largest conservation commitment by USDA in the bay region. NRCS works side by side with farmers and ranchers to improve water, air and soil quality through conservation.

Follow NRCS on Twitter.

Check out other conservation-related stories on the USDA blog.

Preparing for you Lender, Part II

For many, purchasing a farm is a lifelong dream.  Longtime Maryland Horse Council sponsor MidAtlantic Farm Credit (http://www.mafc.com/) helps many Maryland residents make this dream into a reality.  Here is a brief guide to how to prepare for your lender. 

In our last MHC blog we talked about ways to assess your lender when deciding whether or not they are the correct fit for you. This time, we want to share with you a list of items your lender uses to access your credit requests:

1. Financial Information & Documentation

• Balance sheet
• Income statement
• Cash flow projections

2. Written Business Plan

3. Personal Consumer Credit Check

• Verifies balance sheet information
• Credit history

4. Credit Score

• Range from 300’s to 900’s
• Factors that impact credit score (payment history, amounts owed, length of credit history, new credit requests)

5. Personal Characteristics

• Honesty and ethics
• Open and regular communication
• Involved spouse/business partner

If you have any questions about preparing for your lender, please feel free to give us a call at 888.339.3334, email us at connect@mafc.com  or visit our website at farmcreditequine.com. 

Maryland Horse Council

Farm Stewardship Committee

Spring Meeting

May 23, 2013

            The grass was green for our fourth Farm Stewardship meeting hosted by University of Maryland equine specialist and committee vice chair Amy Burk at her rotational pasture demonstration farm in Ellicott City, Maryland.  A dedicated group overcame the threat of rain and gathered to discuss current issues to achieve land stewardship’s goals of contributing to healthy horses and a healthy environment in Maryland. 

            Jane Thery, the committee chair, opened the meeting with an overview of the group’s priorities of promoting a voice for the equestrian community in state-wide policy discussions on the environment; getting more recognition for the positive contribution of land management of the 527,000 acres in Maryland horse farms; linking technical and financial assistance to horse farm needs; staying ahead of the curve on farm management technologies and regulations and; promoting the Maryland Farm Stewardship and Certification and Assessment Program (FSCAP) administered by the Maryland Association of Soil Conservation Districts (MASCD).

            Gerald Talbert, FSCAP Project Leader, shared the good news that we now have nine horse farms in the program – adding two new farms since our winter meeting, Linda Santomenna’s Blue Waters Farm in Chesapeake City and Michael Rubin’s Breezy Hill Farm in Boyds, for a total of 1,055 acres in six counties.  He also described MASCD’s new Pollinator Habitat Project that provides expensive seeds to farms to increase native vegetation that attracts pollinators and noted that there was a surprisingly strong demand for the project. 

            Gerald also gave a summary of the recently-passed Maryland Agricultural Certainty Bill (SB 1029).  The program will allow certified farmers who voluntarily implement advanced best management practices to conduct their business without additional regulations for ten years.   After ten years, farmers will have to be in full compliance with regulations at the time.  An Oversight Committee to help draft the program regulations will be selected by Agricultural Secretary Buddy Hance. The group discussed possible Maryland Horse Council representatives to serve on this committee including Jane Seigler, Steuart Pittman and Carolyn Krome.  Resumes need to go to Secretary Buddy Hance, 50 Harry S. Truman Parkway, Annapolis, MD  21401 and Gloria Chambers at Gloria.chambers@maryland.gov but June 1. 

            Some concerns raised about this program were potential new fees for farm assessments, information on what best management practices it would include, access to technical and financial assistance from state and county governments, nutrient trading benefits and the relationship between the program and FSCAP.  Representatives from the Chesapeake Bay Foundation which is a partner in the FSCAP program, described their role in supporting the agricultural community and willingness to help provide information.  They pointed out that one benefit of participating in Agricultural Certainty program was an opportunity to observe the impact of the Chesapeake Bay Total Maximum Daily Load Plan requirements on a farm over the critical ten year period from 2014 – 2024. Ideas floated for how to get better information out to our community included more contact with Soil Conservation District equine specialists, University of Maryland webinars explaining the program, web-based frequently asked questions on the program as it evolves, more information in the Equiery and identification of speakers who could address horse community groups. This new program will be on the agenda of our summer farm stewardship committee.

            Carolyn Krome of Persimmon Tree Farm, the first horse farm certified in FSCAP,  opened the discussion on the idea of a special recognition of horse farms that implement advanced environmental practices.  She described the practices she has put in place with technical and financial assistance from existing government programs, including wildlife habitat with native plants and MASCD’s Pollinator Habitat Project.  She described her pastures as well-mown and healthy.  She will be working on the criteria for special awards to horse farms for their extraordinary farm stewardship.

            Jane Thery closed the meeting thanking our sponsor, Piedmont Insurance and its representative Matt Curran for the fine refreshments and announcing the summer farm stewardship meeting will be held at the FSCAP-certified farm, Sagamore. 

            The meeting was followed by a wonderful pasture walk and seminar on growing healthy pastures organized by Amy for the University of Maryland extension program. 

Farm Stewardship Meeting May 23, 2013

Spring Farm Stewardship Committee Meeting Contributing to Healthy Horses and a Healthy Environment in Maryland Thursday, May 23 4:30 - 6:00 pm Central Maryland Research and Extension Center University of Maryland 4241 Folly Quarter Road Ellicott City, MD University of Maryland Equine Rotational Grazing Demonstration Farm   Presentations, Networking and Refreshments  This meeting will precede a premier pasture management seminar offered by the  University of Maryland,  "Breaking the Hay Habit: How to Use Pasture to Lower Feed Costs." For more information on the seminar, please contact Jen Reynolds; 301-405-1547. Welcome:   JANE THERY, Chair, Farm Stewardship Committee Update on University of Maryland Equine Programs:  AMY BURK, Associate Professor and Extension Horse Specialist, UMCP  Maryland Farm Stewardship Certification and Assessment Program Update: GERALD TALBERT, Program Director Other speakers may be added. Contact:  Jane Thery ... theryjane@gmail.com  Click HERE to R.S.V.P. The program is free for members of the Maryland Horse Council. Others wishing to attend are encouraged to  join the Maryland Horse Council to take advantage of programs and resources in support of our horse community!

Preparing for Your Lender

For many, purchasing a farm is a lifelong dream.  Longtime Maryland Horse Council sponsor MidAtlantic Farm Credit (http://www.mafc.com/) helps many Maryland residents make this dream into a reality.  Here is a brief guide to how to prepare for your lender.  Check back next week to learn more!

The borrower-lender relationship is a two-way road, and both parties have mutual goals. Both want to ensure the long-term viability of their businesses and have high expectations for one another. When preparing to work with a lender, you should rate the lender based on some of the following characteristics:

1. Skills & Qualities

• Stake in your industry?
• Understands your business and the risks?
• Characteristics of current borrowers

2. Capacity

• Ability to meet current and future borrowing needs?
• What are the lender’s limitations?
• Will they grow with you?

3. Products & Services

• Cookie-cutter vs. customized approach?
• Competitive rates?
• Flexible terms and conditions?

4. People & Lending Philosophy

• Transaction vs. long-term relationship
• Ability to help evaluate options and alternatives
• Timeliness and convenience

5. Long-term Presence in Agriculture

• Support during prosperous and challenging times
• Commitment to industry and its people
• Financial health of the institution

Check back in the next MHC blog post to learn about the ways that your lender rates you when making decisions about working with you and your operation. For more information about Farm Credit, check out farmcreditequine.com, call us at 888.339.3334 or email us at connect@mafc.com. You still have time to watch some great steeplechase racing. Check out the Maryland Governor’s Cup steeplechase series sponsored by Farm Credit.

Horse farms becoming larger part of Bay’s landscape, nutrient efforts

From April 1st's Bay Journal:

http://www.bayjournal.com/article/horse_farms_becoming_larger_part_of_bays_landscape_nutrient_efforts

Sagamore Racing Recognized for Standout Environmental Practices

http://www.sagamoreracing.com/sagamore-racing-recognized-for-standout-environmental-practices-?a=1&c=1053