New Study Highlights Higher Profits for Ag Water Quality Certified Farms
Farmers also saw other improved financial metrics
A new study by the Minnesota State Agricultural Centers of Excellence shows that farmers enrolled in the Minnesota Agricultural Water Quality Certification Program (MAWQCP) had higher profits than non-certified farms. This marks the second year of data highlighting improved financial outcomes.
The “Influence of Intensified Environmental Practices on Farm Profitability” study examined financial and crop production information from farmers enrolled in the Minnesota State Farm Business Management education program. The 64 MAWQCP farms in the study saw 2020 profits that were an average of $40,000 or 18% higher (median of $11,000) than non-certified farms. The 2019 data showed an average of $19,000 or 20% (median of $7,000) in higher profits for certified producers. Other key financial metrics are also better for those enrolled in the MAWQCP, such as debt-to-asset ratios and operating expense ratios.
|
 The "Environmental Cohort" (EC) consists of MAWQCP-certified producers.
These two years of data serve as an early indicator of a positive return on investment for the whole-farm conservation management farmers implement in order to become certified.
2020 Certification Reviews
As part of the ten year Minnesota Agricultural Water Quality Certification contract agreement, per Minnesota Statutes Section 17.9898, a Producer’s records and practices pertaining to certification are subject to review during the period of certification. In 2020, program staff and partners reviewed all operations certified in calendar year 2017, totaling 229 reviews. All active contracts met or showed progress towards conservation goals laid out during the MAWQCP assessment process and reviewers saw countless examples of continuous improvement since certification in 2017.
 Out of the 229 total contracts awarded in calendar year 2017, 126 (55%) had no changes to the operation that affected conditions of the certification agreement, 69 (30%) contracts were amended to add/remove land or update management practices, 3 (1%) operations went through the recertification process due to major changes throughout the farm, 18 (8%) required some additional follow-up on contingency practice implementation and 3 (1%) reviews were delayed to a future year for unique circumstances. Twelve contracts were voided due to farm sales and four were placed in pending status due to unresponsive producers.
The MAWQCP has seen many successes in its seven year history, including reaching the milestones of 1050+ certified producers and 750,000+ acres earlier this year. Many more have gone through the whole farm risk assessment process. The program continues to add new acres, new practices, and new producers, but that is not the only success story. Many certified producers continue making conservation improvements beyond what is required to meet certification standards. Of the 229 producers certified in 2017, nearly 25% have further decreased tillage on one or more field or crop in the rotation since certification, many have added acres of cover crops and 25 have achieved certification endorsements.
Meet a Water Quality Certified Producer
Ben and Alicia Mergen own and operate Mergen Acres, LLC with their family. Mergen Acres, LLC is near Farming, MN and recently became Ag Water Quality Certified. The Mergens raise 500 acres of corn, soybeans, wheat, and alfalfa and operate a 50-cow dairy and poultry barn.
The Mergens have adopted cover crops and are working to implement no-till and strip tillage to improve their soil health, water infiltration, increase organic matter, and reduce erosion. The farm also has 11 acres of land enrolled into the Conservation Reserve Program (CRP).
Becoming Water Quality Certified provided an opportunity for the Mergens to review their management practices and make adjustments. The family believes it’s important to show the public that farmers are good stewards of the land and are continuously working towards improving the soil, land, and water quality.
Check out the MAWQCP story map to get to know some of the other certified producers across Minnesota!
In January 2021, the Minnesota Department of Agriculture (MDA) and the USDA’s Natural Resources Conservation Service renewed their Regional Conservation Partnership Program (RCPP) agreement. Most of the funds tied to the agreement will go to provide financial assistance to producers for implementing conservation practices. New to this renewal however will be Technical Assistance – Enhancement funds to allow for outreach and education. One project the MDA will use the TA-E funds for is to work with the University of Minnesota Extension to provide nutrient management planning tools for farmers and their advisors.
The U of M will take a nutrient management planner and a minimum crop acres calculator for manure application developed by the MDA through the MAWQCP and make improvements and updates to these planning tools. Since proper nutrient management is integral for Water Quality Certification, having improved planning will help producers in Minnesota on their journey to becoming certified. The new and improved Nutrient Management Planner will be developed over the next year followed by training for conservation planners and crop advisors/consultants so they will be able to produce plans to guide farmers in their nutrient applications.
|
