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2021 August Snapshots Pilot explores carbon markets Ben Mergen milks 50 Holsteins, raises a small herd of beef cattle and grows mostly corn, soybeans and alfalfa on his farm near Albany in Stearns County. He’s worked with Stearns County SWCD staff on a pilot project designed to quantify environmental benefits of implementing soil health practices. A three-year NRCS agreement helps to subsidize the pilot project’s enrollment costs. Photo Credits: Ann Wessel, BWSR Farmers who implement soil health practices could tap an emerging revenue stream, earning credits for improvements that benefit water quality and sequester carbon. The Sauk River watershed is one of a dozen U.S. pilot sites. ALBANY — Stearns County farmer Ben private partnership of the ag supply Natural Resources Mergen was among the first to sign and value chain, is seeking buyers as it Conservation up for a pilot project that will quantify prepares for a 2022 launch. ESMC and Service website: The Nature Conservancy developed www.nrcs.usda.gov environmental benefits of the cover crops he’s implementing on his dairy the pilot to help farmers earn USDA is an equal and beef operation. additional revenue for practices that opportunity provider, improve soil health, sequester carbon employer and lender. Verifying the carbon sequestration and and reduce pollutant-carrying field water-quality improvements that result runoff. The pilot will fine-tune testing from soil health practices will position protocols used to verify credits. Mergen — and others within the Sauk River watershed, one of about a dozen “Along with nitrogen-scavenging pilot sites across the U.S. — to sell and nutrient-scavenging, keeping credits on a national market. something living in the soil and erosion control, it’s just another The nonprofit Ecosystem Services aspect of cover crops that maybe will Marketplace Consortium, a public- bring a profit,” Mergen said as he and www.bwsr.state.mn.us 1
Ben Mergen and his daughter Ella checked a 13-acre soybean field on June 29 in Stearns County's Farming Township. Mergen planted the beans directly into a living cover crop. Working with Stearns County SWCD staff and NRCS assistance, this year Mergen is trying cover crops on 90 acres. He’s also among the first within the Sauk River watershed signed on to an NRCS-supported pilot project that could lead to another revenue source for the farm: carbon credits. “ daughter Ella checked a If there’s a way to cut back on your “I think it’s another avenue soybean field. to reach farmers looking to labor and your time ... and still be improve their resources. It’s Mergen moved back to the profitable, maybe if you do have to take a yield also another opportunity to farm 10 years ago from leverage additional financial Indiana, where he’d been hit, between the fuel savings and the cost of resources for our farmers as ” working for Gavilon Grain. having the machinery, that should pan out. If they implement additional At the time, his father, you get a payment on top of it from the conservation practices,” Roger, was ready to cut Fuchs said. ESMC, that only helps. back. He still helps with The 50-acre enrollment on fieldwork and twice-daily — Ben Mergen, Stearns County farmer Mergen’s farm is also part chores. But Mergen — a of All Acres for Our Water, fifth-generation farmer — share programs,” said how that all will work.” which centers on the Backes lives on the home place Leif Fixen, agriculture Lake subwatershed. with his wife, Alicia — a strategy manager for TNC The pilot aims to enroll full-time dental hygienist in in Minnesota, North Dakota 50,000 acres within the “What we’re trying to do Melrose — and their three and South Dakota. Sauk River watershed, which is clean up the water — daughters. drains to the Mississippi either stop erosion of soil or The ESMC tool can be used River. The watershed was runoff of nutrients. That’s The Mergens milk 50 for third-party valuation of chosen partly because where all of this will tie in Holsteins and raise a beef carbon reduction or water- the Stearns County Soil & so that we can cut down herd of 25 cow-calf pairs. quality improvement within Water Conservation District on the nitrates, whether They raise about 500 acres a company’s supply chain. (SWCD) already was working it’s in groundwater or of corn, soybeans, alfalfa Or it can generate tradeable with producers on All Acres whether it’s getting into a and the occasional spring credits that can be sold to a for Our Water. Another stream and heading down wheat crop. company. pilot designed to spur to the Mississippi and With dairy, beef, corn and conservation practices, All out to the Gulf,” Mergen “The farmer will be able to Acres for Our Water involves soybeans, it’s exactly the said of the programs. “As market each of those credits TNC and the Minnesota sort of farm the pilot project far as benefits, besides independently,” Fixen said. Land Trust. is seeking. “Once the marketplace is what’s on the farm and launched, you’ll be able By early summer, in our pocketbook, it’ll be Funding from the USDA’s the environment with the Natural Resources to sell your carbon credit, Stearns County SWCD you’ll be able to sell a Administrator Dennis cleaner water, and then the Conservation Service (NRCS), carbon capture has to do The Nature Conservancy and water-quality credit — and Fuchs said enrollment potentially even inside of totaled about 500 acres. with climate change.” the Minnesota Department of Agriculture cover costs that water-quality credit SWCD staff members Mergen first tried cover associated with the three- you’ll be able to sell your contact landowners, offer crops five years ago with year signup period, which nitrogen credit, you’ll be technical assistance and a 40-acre signup through ends in 2022. able to sell your phosphorus help producers apply for NRCS’ Conservation credit and you’ll be able to reimbursements. SWCD Stewardship Program. “Right now, the big benefit sell your total suspended staff also helped with soil is you get to the front solids credit. A lot of that is sampling, which will be “You kind of got paid to try of the line for the cost- a little less known right now, repeated in five years. it, so there wasn’t a whole www.bwsr.state.mn.us 2
“ lot of risk involved, which is a nice way to start any kind ESMC Pilot Project Details of project you don’t know a whole lot about,” Mergen ENROLLMENT: Minnesota is one of about a dozen Environmental said. states where the pilot project is underway. A handful of other enrollments from watersheds in southwestern markets offer a This season, his cover crop Minnesota was based on landowner interest. voluntary way enrollments total 90 acres. The programs in which he’s PILOT FUNDING: In Minnesota, funds from the USDA’s of achieving our involved will generate about Natural Resources Conservation Service, the state desired air and Department of Agriculture’s Minnesota Agricultural $11,000 in assistance. Water Quality Certification Program and The Nature water outcomes He tried something new Conservancy leverage partners’ cost-share and at potentially the on the 13-acre bean field: technical assistance. The three-year NRCS agreement helps to subsidize enrollment costs. lowest cost to planting green. This spring ” he seeded soybeans into a society. PROJECT PARTNERS: In Minnesota, they include living cover crop. Mergen the Stearns County SWCD, AgCentric, Centra Sota said the method required Cooperative, the Environmental Initiative, Field to closely watching the rye, Market, the Headwaters Agriculture Sustainability — Leif Fixen, agriculture which tends to take off Partnership, Houston Engineering, Land O’Lakes’ in the spring, but a well- strategy manager for Truterra, MBOLD, Midwest Dairy, the Minnesota Milk timed chemical application Producers Association, Syngenta and the University of TNC in Minnesota, North successfully killed the Minnesota Forever Green Initiative. Dakota and South Dakota cover crop. The beans, planted at the same time as POTENTIAL BUYERS: Buyers could include retailers conventionally tilled fields, seeking to claim a zero-carbon net impact, or were thriving in late June. municipalities that find it more affordable to improve water quality via upstream credits vs. a new “I’m hoping to get at least wastewater treatment plant. half my ground covered in cover crops, if not three- quarters,” Mergen said of bought a strip-till machine. the microorganisms alive,” Mergen said. The Minnesota Board of his long-term goal. “I’m trying to be more Water and Soil Resources His best advice to those profitable with less work. “I’m hoping to do some is among the ESMC pilot considering soil health So cutting back on some custom work, maybe see project supporters. BWSR’s practices: “Start small. Don’t of the fieldwork — that’s if some other people want mission is to improve do more than you think you where I picked up that to try the strip-till,” he said. and protect Minnesota’s can handle in spring or fall.” strip-till machine. I’m “No-tilling soybeans looks hoping to get away from full like it’s working pretty well water and soil resources This year, Mergen further tillage and leave as much so far. We’ll see what the by working in partnership committed to soil health cover on as I can and keep yield monitor says, but so with local organizations and practices when he became a some growing roots in the far it looks like a pretty nice private landowners. www. cover crop seed dealer and ground. I think that keeps stand.” bwsr.state.mn.us www.bwsr.state.mn.us 3
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