USDA pushing water quality credit trading

Agriculture Secretary Tom Vilsack announced a funding opportunity that will bring states, USDA and other stakeholders together to enhance the effectiveness of water quality credit trading. USDA's Natural Resources Conservation Service is providing up to $10 million in Conservation Innovation Grants (CIG) for these projects, with up to $5 million focused on water quality credit trading in the Chesapeake Bay watershed. Proposals for projects are due March 2, 2012. "For the first time USDA has offered funding specifically for water quality trading. We want to help states and other partners develop robust and meaningful markets," Vilsack said. "Our goal is to demonstrate that markets are a cost-effective way to improve water quality in places like the Chesapeake Bay watershed, and agricultural producers are critical to the function of these markets." Water quality credit trading is a market-based approach to lowering the costs of reducing pollution, and has the potential to engage more farmers and ranchers in water quality improvement efforts through the implementation of more conservation practices on agricultural lands. Through water quality credit trading, a producer who implements conservation practices to reduce water quality pollutants can also benefit by generating water quality market credits that could be sold in an open market, which would reduce the costs of implementing and maintaining the conservation practices...more