By Scout Nelson
The U.S. Department of Agriculture (USDA) is investing $4.4 million in seven projects to expand wetland mitigation banking opportunities for agricultural producers across the United States. The funding supports wetland restoration, protection, and development while helping farmers meet federal conservation requirements.
The investment is provided through USDA's Natural Resources Conservation Service (NRCS) under the Wetland Mitigation Banking Program (WMBP). The program helps develop wetland mitigation banks that generate credits for agricultural producers who need to compensate for wetland impacts at another location. These projects support both agricultural activities and environmental conservation.
Understanding the Wetland Mitigation Banking Program
Wetlands are important natural areas that support wildlife, improve water quality and help manage water supplies. However, agricultural activities and development can sometimes affect these areas. Wetland mitigation banking provides a way to balance these impacts through restoration, creation, or improvement of wetlands in other locations.
Under this system, landowners or organizations restore, create or improve wetlands to establish mitigation credits. Agricultural producers can purchase these credits when they need to meet wetland conservation requirements for activities affecting wetlands elsewhere.
“USDA is putting Farmers First by investing in projects that expand wetland mitigation banking opportunities for agricultural producers across the country,” said USDA’s Natural Resources Conservation Service Chief Colton L. Buckley. “Through these investments, we are supporting working lands, advancing voluntary conservation efforts, and helping ensure producers have the options to remain eligible for USDA programs.”
The USDA gives priority to projects in states with large numbers of individual wetlands, extensive wetland areas, and higher demand for conservation compliance support.
Seven Projects Receive USDA Funding
The $4.4 million investment supports seven projects in different states. Each project focuses on expanding wetland mitigation opportunities and helping agricultural producers manage their conservation responsibilities.
Wisconsin Department of Natural Resources
The Wisconsin Department of Natural Resources will expand and improve the Wisconsin Agricultural Mitigation Bank (WAMB). The project includes developing new mitigation sites, monitoring and improving existing sites, helping producers purchase credits and promoting the program to agricultural communities.
Wetland Mitigation II in Michigan
Wetland Mitigation II will develop four wetland mitigation banks in southern and mid-Michigan. The projects will restore, improve, or create approximately 107 acres of forested wetlands. The resulting mitigation credits will be available only to agricultural producers who need to meet wetland mitigation requirements.
Magnolia IN LLC in Indiana
Magnolia IN LLC operates the Indiana Conservation Exchange, the state's only agricultural wetland mitigation bank. Its existing bank has seen strong demand, with its first group of credits selling out within one year. The remaining credits are expected to be used by the end of 2027.
With the new funding, Magnolia plans to establish at least 30 acres of forested wetland mitigation bank in eastern Indiana. This will provide additional credit for agricultural producers.
Iowa Agricultural Mitigation Inc.
Iowa Agricultural Mitigation Inc. will work with the Wright County Conservation Board and Wright County Drainage District No. 29 to restore a wetland in Wright County, Iowa.
The project will restore approximately 20 acres of depressional emergent wetland. It will also improve management opportunities at a publicly owned recreation area and reduce maintenance needs for the local drainage district.
South Dakota Farm Bureau
South Dakota Farm Bureau will expand the South Dakota Ag Wetland Exchange program. The project will identify, design and establish four additional wetland mitigation bank sites in high-demand areas of eastern South Dakota.
These sites are expected to generate approximately 120 mitigation credits, giving local agricultural producers more options to meet wetland conservation requirements.
North Dakota Agricultural Mitigation Inc.
North Dakota Agricultural Mitigation Inc. will support the growth and management of the North Dakota Wetland Trade program. The project aims to provide producers with a reliable and affordable way to meet wetland mitigation needs.
It will also encourage landowners to restore or create wetlands by providing opportunities and incentives for conservation activities.
Waypoint LLC in Illinois
Waypoint LLC will develop mitigation credits specifically for agricultural producers who must follow wetland conservation rules under the Food Security Act. The project will mainly focus on a property of approximately 1,000 acres in southern Illinois.
Agricultural producers participating in most USDA programs must follow wetland conservation requirements. These rules generally prevent producers from growing agricultural crops on converted wetlands or draining wetlands to increase farmland.
In some situations, avoiding or restoring wetlands on the same property can be difficult. The Farm Bill allows producers to use off-site mitigation by purchasing credits from approved wetland mitigation banks.
These credits provide a legal way for eligible producers to meet wetland mitigation requirements and maintain access to USDA program benefits when permitted wetland impacts occur.
WMBP funding supports the development and establishment of mitigation banks. Eligible expenses include identifying suitable sites, preparing banking plans, restoring wetlands, conducting land surveys, obtaining permits, completing title searches, and studying market demand.
However, the funding cannot be used to purchase land or conservation easements.
NRCS awarded its first WMBP grants in 2016. Since then, the agency has supported 41 projects involving the creation or expansion of wetland mitigation banks across 14 states.
Each award recipient can request up to $1 million for a project, and projects can continue for up to four years.
After a mitigation bank is established, the landowner generally retains ownership and use of the property. However, a conservation easement protects the wetland area from activities that could damage its environmental value.
Through these investments, the USDA aims to support agricultural production while protecting natural resources. The projects also provide farmers with additional options for meeting conservation requirements and maintaining productive working lands.
For more information about the program, visit the USDA NRCS Wetland Mitigation Banking Program webpage: https://www.nrcs.usda.gov/programs-initiatives/wetland-mitigation-banking-program.
Photo Credit: usda-nrcs
Categories: North Dakota, Government & Policy