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COMMODITY BUFFER PROGRAM MODEL
DRYLAND AGRICULTURE
By Seth Flanders
CONSERVATION
“Conservation will ultimately boil down to
rewarding the private landowner who conserves
the public interest. Our conservation must not be
just protection and development, but a creative
conservation of restoration
and innovation.”
Lyndon B. Johnson 1965
CREATIVE CONSERVATION
 Improve farm efficiency.
 Increase economic viability.
 Reward for protecting public interest.
 Full value compensation.
PROGRAM START IN A NUTSHELL
1. Regional Conservation Partnership Program
RCPP opportunity
2. Models to assess value
3. Compensates as adjacent crop rotation.
4. Designed for dryland agriculture in eastern
Washington.
WHY IT MAKES SENSE
Our efforts were to reverse
the thought process from:
“I can’t/won’t do buffers”
To: “Why wouldn’t I
buffer the stream?”
COMMODITY BUFFER PROGRAM
1. Develop connection
between local upland
practices, buffer widths,
and stream types.
2. Develop an equation using
variable “real world”
farming factors.
3. Enhance or maintain
economics of production.
4. Compensate producer for
true value of buffer area.
WHAT IS A CONSERVATION BUFFER?
Conservation buffers are small
areas or strips of land in
permanent vegetation,
designed to intercept
pollutants and manage other
environmental concerns.
FLEXIBLE BUFFERS IN SPOKANE
 Eastern Washington
gets avg 15-30in
precipitation a year.
(Western Regional Climate Center)
 Sediment and
nutrients.
 Ephemeral streams
and gateway riparian
forest buffer.
TYPES OF CONSERVATION BUFFER
•Provides distanced buffer between field and environment
Riparian forest
buffers (NRCS 391)
•Filter sediment with designed schematics
Filter strips
(NRCS 393)
•Native grass within waterway to help control flow velocity
and filter sediment
Grassed waterways
(NRCS 412)
•Lowers temperature on perennial streams
•Provides habitat
Field Border
(NRCS 386)
COMMODITY BUFFER ENVIRONMENT
1. Filter sediment
2. Customized width
3. Riparian Incentive
4. Haying allowed after July 1st
COMMODITY BUFFER PROGRAM
1. Develop connection
between local upland
practices, buffer widths,
and stream types.
2. Develop an equation using
variable “real world”
farming factors.
3. Enhance or maintain
economics of production.
4. Compensate producer for
true value of buffer area.
PAYMENT SYSTEM
Width
Length
Area
Width
Length
Area
Area
Area
APH APH
(30%)
APH
(10%)
RMA Price
Adjusted APH RMA Price 35% Variable Cost
NET
GROSS
COMMODITY BUFFER
PAYMENT ANALYSIS
•Width of Buffers (Determined by local buffer table requirements)
-Area of 4.25 Acres
•APH yields for the majority adjacent crops (80 Bushels/acre)
-If no yield, use County T-yields that best match area
•Utilize RMA MPCI Crop Prices – Projected price in 2019 was
$6.59/Bushel for winter wheat.
•4.25 Acres in buffers -APH of 80 Bushels/acre -$6.59/Bushel
BUT………… We are also giving a Productivity Boost on this land of
30% to the APH and a 10% Bonus increase to APH for every 10ft of
Riparian Woody Planting!
COMMODITY BUFFER
PAYMENT ANALYSIS
•4.25 Acres x (112Bu/acre) x $6.59/bushel = $3,137 Gross Rev
in Year 1
Adjustment for Variable Cost – 35%
- $3,137x 65% = $2,039 Net Income
•Productivity Boost = APH + (30% of 80Bu/acre = 24Bu/acre )=
104Bu/acre APH
$2,039 Net Income / 4.25 Actual Acres = $480/acre
payment for fall wheat
•10ft of Riparian Plants Bonus =10% of 80Bu/acre = 8Bu/ac
COMMODITY BUFFER
PAYMENT ANALYSIS
Market price increase:
If the price of wheat is higher than the RMA MPCI projected
price on October 15th, 50% of the increase will be added to
the RMA Price!
Note: RMA prices have been about $1-2 higher than market from 17-20
Guarantee a minimum of $200/acre rental payment
- 4.25ac x $200/ac = $850 minimum payment
COMMODITY BUFFER PROGRAM
1. Develop connection
between local upland
practices, buffer widths,
and stream types.
2. Develop an equation using
variable “real world”
farming factors.
3. Enhance or maintain
economics of production.
4. Compensate producer for
true value of buffer area.
PROGRAM CHARACTERISTICS
 Variety of Eligible
Grasses
 Stem Density
 Cutting and Grazing
 Existing Buffers
 New Buffers
 Contract Length
PROGRAM CHARACTERISTICS
CONT
 Continuous sign-up.
 Implement Commodity Buffer
Program Payments annually
(in spring).
 Combine with other programs
(RCPP, Farmed Smart).
PROGRAM IMPLEMENTATION
 Meet with producers
 Farm and Tract #s
 Equation or NRCS information
 Majority adj crop, yield, riparian woody addition
 Seed mixture, seeding rate
 Map out buffers
 Verify length on Google maps
BUFFER PRICING
 RMA vs market value
 Adjacent crop info
 Verify Buffers
 Generate contracts
through CPDS state
contracting system
 Sign and send payment
BUFFER RESPONSIBILITY AND VERIFICATION
 Each landowner is responsible for seeding and
maintaining buffer to specifications agreed
upon with SCD
 Each buffer is field checked for following:
 implementation (width, species)
 confirmed adjacent upland practices
 no cutting or grazing has occurred before July 1st
Reed Canary
Grass
Alfalfa grass
mix buffer
CONTRACT LENGTH
 Every producer opted
for longer contracts
when given the
opportunity.
 If we had a permanent
source of funding we
could offer longer
contract lengths.
COMMODITY BUFFER PROGRAM
1. Develop connection
between local upland
practices, buffer widths,
and stream types.
2. Develop an equation using
variable “real world”
farming factors.
3. Enhance or maintain
economics of production.
4. Compensate producer for
true value of buffer area.
YEAR ONE OF PROGRAM
 16 Entities
 29 Miles
 109 Acres
 Total Cost = $33,000
YEAR TWO OF PROGRAM
 21 Entities
 42 Miles
 171 Acres
 Total Cost = $45,000
YEAR THREE OF PROGRAM
 32 Entities
 105 Miles
 379 Acres
 Total Cost = $106,500
YEAR FOUR OF PROGRAM
 36 Entities
 109 Miles
 397 Acres
 Total Cost = $118,000
YEAR FIVE OF PROGRAM
 38 Entities
 121 Miles
 453 Acres
 Total Cost = $135,000
 Total Program Length = 121 mi
 Total Program Acres = 453 ac
 Implemented Length = 83 mi
 Implemented Acres = 324 ac
 Existing Length = 38 mi
 Existing Acres = 129 ac
IMPLEMENTED VS. EXISTING
FINAL NUMBERS
YEAR 2017 2018 2019 2020 2021
# of
Entities
16 21 32 36 38
Miles 29 42 105 109 121
Acres 109 171 379 397 453
Cost $33,000 $45,000 $106,500 $118,000 $135,000
%Increase Base Line 57% 122% 5% 14%
PROGRAM SUCCESS FINISHING PROGRAM
 38 Entities
 121 miles of Buffer
 453 acres of Buffer
 Over life of the program:
$1,000/mi.
 approx $280/ac.
 All 3 year contracts
extended to 5 years
 90% of enrolled are
interested in more buffers
COMMODITY BUFFERS ARE CHOSEN BECAUSE…
+ They Pay: for true value of land
+ They are prescriptive: local buffer
table and grass mixes
+ Flexible to local upland practices: No-
till to conventional
+ Cost effective and economic
management: Producers do the work
+ Address local environmental concern:
Filter sediment, capture nutrients,
water protection, and provides habitat
- Soil Rental Rates
- They are designed: certification,
approval, engineering
- Strict set standards: One size
regardless of local upland practice
- Complicated to put in and manage:
Agency puts in, establishes, and
manages
- May address non relevant
environmental concern: filtration,
capture nutrients, habitat, and shade
PRODUCER SUPPORT
 This program makes
sense to producers
 Hay and approved
grazing
 Crop values and upland
practices
 Addresses water quality
 Economic
 Participation rates
ECOLOGY SUPPORT
 Meets compliance
 Riparian plantings
 Larger buffer sizes
 Minimum 5 year contracts
 All producers in program
would gladly comply to 5
years
The picture can't be displayed.
TRIBAL & LOCAL SUPPORT
 RCPP
 State boundaries
 Spokane River Forum
 Spokane Riverkeeper
& other stakeholders
COMMODITY BUFFER FUNDING
• Washington State
Conservation
Commission match for
RCPP.
• Washington Department
of Ecology (EPA)
• SCD general budget
MAP OF WASHINGTON AG
COMMODITY BUFFER PROGRAM
1. Develop connection
between local upland
practices, buffer widths,
and stream types.
2. Develop an equation using
variable “real world”
farming factors.
3. Enhance or maintain
economics of production.
4. Compensate producer for
true value of buffer area.
FUTURE OF PROGRAM
 Program Integrity
 CBP has potential to grow into a statewide if not
nationwide program.
 WSCC critical to future. Could make significant
impacts to WQ across state.
 Pilot program to other CDs.
MODEL EXPANSION
 Flexibility of program to protect local eco regions and salmonids.
 Provides introduction to buffers and gateway for successful
woody riparian growth.
 Weed management and land already out of production
 Prescriptive to specific land use, adjacent crops and values.
 Companion to CREP and other programs.
EFFECTIVE CONSERVATION
 The most effective conservation is the one
that gets on the ground...
` QUESTIONS?

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Breakout Session Presentation: Commodity Buffers: An Innovated Approach to Establishing Stream Buffers

  • 1. COMMODITY BUFFER PROGRAM MODEL DRYLAND AGRICULTURE By Seth Flanders
  • 2. CONSERVATION “Conservation will ultimately boil down to rewarding the private landowner who conserves the public interest. Our conservation must not be just protection and development, but a creative conservation of restoration and innovation.” Lyndon B. Johnson 1965
  • 3. CREATIVE CONSERVATION  Improve farm efficiency.  Increase economic viability.  Reward for protecting public interest.  Full value compensation.
  • 4. PROGRAM START IN A NUTSHELL 1. Regional Conservation Partnership Program RCPP opportunity 2. Models to assess value 3. Compensates as adjacent crop rotation. 4. Designed for dryland agriculture in eastern Washington.
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  • 8. WHY IT MAKES SENSE Our efforts were to reverse the thought process from: “I can’t/won’t do buffers” To: “Why wouldn’t I buffer the stream?”
  • 9. COMMODITY BUFFER PROGRAM 1. Develop connection between local upland practices, buffer widths, and stream types. 2. Develop an equation using variable “real world” farming factors. 3. Enhance or maintain economics of production. 4. Compensate producer for true value of buffer area.
  • 10. WHAT IS A CONSERVATION BUFFER? Conservation buffers are small areas or strips of land in permanent vegetation, designed to intercept pollutants and manage other environmental concerns.
  • 11. FLEXIBLE BUFFERS IN SPOKANE  Eastern Washington gets avg 15-30in precipitation a year. (Western Regional Climate Center)  Sediment and nutrients.  Ephemeral streams and gateway riparian forest buffer.
  • 12. TYPES OF CONSERVATION BUFFER •Provides distanced buffer between field and environment Riparian forest buffers (NRCS 391) •Filter sediment with designed schematics Filter strips (NRCS 393) •Native grass within waterway to help control flow velocity and filter sediment Grassed waterways (NRCS 412) •Lowers temperature on perennial streams •Provides habitat Field Border (NRCS 386)
  • 13. COMMODITY BUFFER ENVIRONMENT 1. Filter sediment 2. Customized width 3. Riparian Incentive 4. Haying allowed after July 1st
  • 14. COMMODITY BUFFER PROGRAM 1. Develop connection between local upland practices, buffer widths, and stream types. 2. Develop an equation using variable “real world” farming factors. 3. Enhance or maintain economics of production. 4. Compensate producer for true value of buffer area.
  • 15. PAYMENT SYSTEM Width Length Area Width Length Area Area Area APH APH (30%) APH (10%) RMA Price Adjusted APH RMA Price 35% Variable Cost NET GROSS
  • 16. COMMODITY BUFFER PAYMENT ANALYSIS •Width of Buffers (Determined by local buffer table requirements) -Area of 4.25 Acres •APH yields for the majority adjacent crops (80 Bushels/acre) -If no yield, use County T-yields that best match area •Utilize RMA MPCI Crop Prices – Projected price in 2019 was $6.59/Bushel for winter wheat. •4.25 Acres in buffers -APH of 80 Bushels/acre -$6.59/Bushel BUT………… We are also giving a Productivity Boost on this land of 30% to the APH and a 10% Bonus increase to APH for every 10ft of Riparian Woody Planting!
  • 17. COMMODITY BUFFER PAYMENT ANALYSIS •4.25 Acres x (112Bu/acre) x $6.59/bushel = $3,137 Gross Rev in Year 1 Adjustment for Variable Cost – 35% - $3,137x 65% = $2,039 Net Income •Productivity Boost = APH + (30% of 80Bu/acre = 24Bu/acre )= 104Bu/acre APH $2,039 Net Income / 4.25 Actual Acres = $480/acre payment for fall wheat •10ft of Riparian Plants Bonus =10% of 80Bu/acre = 8Bu/ac
  • 18. COMMODITY BUFFER PAYMENT ANALYSIS Market price increase: If the price of wheat is higher than the RMA MPCI projected price on October 15th, 50% of the increase will be added to the RMA Price! Note: RMA prices have been about $1-2 higher than market from 17-20 Guarantee a minimum of $200/acre rental payment - 4.25ac x $200/ac = $850 minimum payment
  • 19. COMMODITY BUFFER PROGRAM 1. Develop connection between local upland practices, buffer widths, and stream types. 2. Develop an equation using variable “real world” farming factors. 3. Enhance or maintain economics of production. 4. Compensate producer for true value of buffer area.
  • 20. PROGRAM CHARACTERISTICS  Variety of Eligible Grasses  Stem Density  Cutting and Grazing  Existing Buffers  New Buffers  Contract Length
  • 21. PROGRAM CHARACTERISTICS CONT  Continuous sign-up.  Implement Commodity Buffer Program Payments annually (in spring).  Combine with other programs (RCPP, Farmed Smart).
  • 22. PROGRAM IMPLEMENTATION  Meet with producers  Farm and Tract #s  Equation or NRCS information  Majority adj crop, yield, riparian woody addition  Seed mixture, seeding rate  Map out buffers  Verify length on Google maps
  • 23. BUFFER PRICING  RMA vs market value  Adjacent crop info  Verify Buffers  Generate contracts through CPDS state contracting system  Sign and send payment
  • 24. BUFFER RESPONSIBILITY AND VERIFICATION  Each landowner is responsible for seeding and maintaining buffer to specifications agreed upon with SCD  Each buffer is field checked for following:  implementation (width, species)  confirmed adjacent upland practices  no cutting or grazing has occurred before July 1st
  • 26. CONTRACT LENGTH  Every producer opted for longer contracts when given the opportunity.  If we had a permanent source of funding we could offer longer contract lengths.
  • 27. COMMODITY BUFFER PROGRAM 1. Develop connection between local upland practices, buffer widths, and stream types. 2. Develop an equation using variable “real world” farming factors. 3. Enhance or maintain economics of production. 4. Compensate producer for true value of buffer area.
  • 28. YEAR ONE OF PROGRAM  16 Entities  29 Miles  109 Acres  Total Cost = $33,000
  • 29. YEAR TWO OF PROGRAM  21 Entities  42 Miles  171 Acres  Total Cost = $45,000
  • 30. YEAR THREE OF PROGRAM  32 Entities  105 Miles  379 Acres  Total Cost = $106,500
  • 31. YEAR FOUR OF PROGRAM  36 Entities  109 Miles  397 Acres  Total Cost = $118,000
  • 32. YEAR FIVE OF PROGRAM  38 Entities  121 Miles  453 Acres  Total Cost = $135,000
  • 33.  Total Program Length = 121 mi  Total Program Acres = 453 ac  Implemented Length = 83 mi  Implemented Acres = 324 ac  Existing Length = 38 mi  Existing Acres = 129 ac IMPLEMENTED VS. EXISTING
  • 34. FINAL NUMBERS YEAR 2017 2018 2019 2020 2021 # of Entities 16 21 32 36 38 Miles 29 42 105 109 121 Acres 109 171 379 397 453 Cost $33,000 $45,000 $106,500 $118,000 $135,000 %Increase Base Line 57% 122% 5% 14%
  • 35. PROGRAM SUCCESS FINISHING PROGRAM  38 Entities  121 miles of Buffer  453 acres of Buffer  Over life of the program: $1,000/mi.  approx $280/ac.  All 3 year contracts extended to 5 years  90% of enrolled are interested in more buffers
  • 36. COMMODITY BUFFERS ARE CHOSEN BECAUSE… + They Pay: for true value of land + They are prescriptive: local buffer table and grass mixes + Flexible to local upland practices: No- till to conventional + Cost effective and economic management: Producers do the work + Address local environmental concern: Filter sediment, capture nutrients, water protection, and provides habitat - Soil Rental Rates - They are designed: certification, approval, engineering - Strict set standards: One size regardless of local upland practice - Complicated to put in and manage: Agency puts in, establishes, and manages - May address non relevant environmental concern: filtration, capture nutrients, habitat, and shade
  • 37. PRODUCER SUPPORT  This program makes sense to producers  Hay and approved grazing  Crop values and upland practices  Addresses water quality  Economic  Participation rates
  • 38. ECOLOGY SUPPORT  Meets compliance  Riparian plantings  Larger buffer sizes  Minimum 5 year contracts  All producers in program would gladly comply to 5 years The picture can't be displayed.
  • 39. TRIBAL & LOCAL SUPPORT  RCPP  State boundaries  Spokane River Forum  Spokane Riverkeeper & other stakeholders
  • 40. COMMODITY BUFFER FUNDING • Washington State Conservation Commission match for RCPP. • Washington Department of Ecology (EPA) • SCD general budget
  • 42. COMMODITY BUFFER PROGRAM 1. Develop connection between local upland practices, buffer widths, and stream types. 2. Develop an equation using variable “real world” farming factors. 3. Enhance or maintain economics of production. 4. Compensate producer for true value of buffer area.
  • 43. FUTURE OF PROGRAM  Program Integrity  CBP has potential to grow into a statewide if not nationwide program.  WSCC critical to future. Could make significant impacts to WQ across state.  Pilot program to other CDs.
  • 44. MODEL EXPANSION  Flexibility of program to protect local eco regions and salmonids.  Provides introduction to buffers and gateway for successful woody riparian growth.  Weed management and land already out of production  Prescriptive to specific land use, adjacent crops and values.  Companion to CREP and other programs.
  • 45. EFFECTIVE CONSERVATION  The most effective conservation is the one that gets on the ground...