Pilot-testing Performance-based Incentives for Agricultural Pollution Control

This Conservation Innovation Grants project will demonstrate the ability of performance-based incentives to increase farmer flexibility and improve the technical- and cost-effectiveness of agricultural nonpoint source pollution control. Performance-based incentives will be pilot-tested in 6 watersheds in the Upper Mississippi River Basin and the Lake Champlain Basin. Incentive payments to EQIP-eligible producers will be based on the achievement of farm-level environmental performance targets that have been .created by working groups of farmers, agency staff, and scientists in each state. This performance-based approach will provide flexibility for farmers to use appropriate, creative, and innovative strategies to address nonpoint source pollution issues. In the process farmers will seek the most cost-effective solutions for their operations, which will increase the cost-effectiveness of agricultural pollution control programs. This approach will be transferable to any agricultural watershed, provided that local stakeholder input is used to design appropriate performance measures and targets.