Why Our Work is Needed
In the Great Lakes region, phosphorus pollution degrades water quality,1 harms wildlife,2 and negatively affects the health and economies of regional communities.3 Phosphorus is an essential macronutrient required for plant growth and is applied as fertilizer to croplands to enhance crop yields. However, phosphorus is readily removed from agricultural fields by water runoff and soil erosion and transported into streams, wetlands and lakes – deteriorating watersheds through the process of eutrophication. Prior research suggests that farmers can reduce phosphorus loss from agricultural fields while maintaining yields by adopting soil conservation Best Management Practices (BMPs), such as cover crops or no-till, in concert with nutrient management BMPs (e.g., subsurface placement, avoiding winter applications).4,5,6 In addition to reducing nutrient loss, soil conservation BMPs may also improve habitat and water quality by decreasing pollutants such as sediment and pathogens resulting from cropland erosion.7 Therefore, both the US Department of Agriculture Natural Resource Conservation Service (USDA-NRCS) and the US Environmental Protection Agency’s (EPA) Great Lakes Restoration Initiative (GLRI) promote the adoption of soil conservation BMPs by farmers to reduce phosphorus pollution and restore water quality in the Great Lakes. This project was focused on creating an innovation to spur adoption of soil conservation BMPs through a special round of GLRI funding.
Brief Overview of What We’re Doing
Delta Institute, with Allegan County Conservation District, and Michigan Farm Bureau, created and implemented an innovative program to reduce excessive phosphorus loading in the Kalamazoo River Watershed associated with agricultural sources through a market and performance-based incentive. The program’s goals were to enroll soil conservation BMPs on up to 6,600 acres at target locations in the Kalamazoo River Watershed and reduce phosphorous load by 5,000 lbs. into the Great Lakes. Performance-based programs can provide a more targeted approach to investing in cost-share for soil conservation BMPs when program funding is limited. Instead of paying for implementing a particular conservation practice, such as cover crops or riparian buffers, in terms of acres or feet, they calculate farmer payments based on the net environmental improvements that arise from that practice.
The Project Team administrated and implemented a “reverse auction” to incentivize farmers to adopt soil conservation BMPs to reduce nutrient losses. In a reverse auction, farmers enter bids to provide phosphorus loading reductions at the lowest cost by implementing conservation practices. Delta Institute paid farmers whose bids were accepted for those reductions. The payments were based on estimates of reduction expected and farmers’ ability to implement the practices at a cost lower than the maximum allowable price set by the program. The Project Team utilized advanced modeling tools to estimate reductions. Semiannual photographic verifications were performed to ensure conservation practices were being implemented.
Pay for Performance-focused conservation projects are an established area of Delta’s expertise, and both has been operated and is currently operating in other targeted Midwestern / Great Lakes geographies.
We’re pleased to say that we exceeded our phosphorus reduction goal, and successfully closed this project in 2024.
Location
The area shown on the map below displays the land that was eligible for participation in the reverse auction. Zoom in on the map to explore the project area in greater detail.
Project Materials and Resources
The additional resources below also contain helpful information about the project and the tools that have been developed by the project team.
Auction Materials
The resources below were provided to farmers interested in participating in the program.
Frequently Asked Questions
Click here to view/download.
This document contains important information regarding how to participate in the auction. For more detail, check the auction rules.
Auction Rules
Click here to view/download.
This file contains the most up-to-date auction rules.
VIDEO: How to Participate in the Phosphorus Reduction Auction
Partners
Delta Institute is grateful for our partnership and the Allegan County Conservation District and the Michigan Farm Bureau.
Funding
This project has been funded wholly or in part by the United States Environmental Protection Agency under assistance agreement GL00E02796 to Delta Institute. The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the EPA endorse trade names or recommend the use of commercial products mentioned in this document.