Transcript Note that these figures includes the $0.15 increase to MDA starting 7

Brief Overview of MDA’s NonPoint Program and Midwest
Fertilizer Fees
Bruce Montgomery
MN Department of Agriculture
MDA’s Non-Point Groundwater Program
Who are we? We are a small team of Agronomists/Soil
Scientists responsible for responding in areas of the state where
groundwater resources have been impacted by ag-chemical inputs
(primarily nutrients) from non-point activities.
Mission: Assist agricultural communities in achieving their water
quality goals by providing cost effective response strategies;
serve as liaison to the impacted producers by providing
educational outreach, technical assistance, cost sharing
opportunities, assessment of BMP effectiveness & adoption rates,
and developing innovative partnerships
Legislative Foundation
• Chap. 326, Art. 6, Sec. 33, Sub. 2b
(Session Law)
– Nitrogen Fertilizer Task Force
– NFMP – prevention, evaluation & mitigation
of nonpoint source nitrogen fertilizer
– Finalized August 1990
• Minn. Stat. § 103H
– Establish Agricultural Best Management
Practices (to include demonstrations)
Summary of Nitrogen Fertilizer Management
Plan Process
3 Phases: BMP Promotion, Evaluation, Response
Effectiveness
GOOD
Effectiveness
GOOD
Effectiveness
POOR
Effectiveness
POOR
Adoption
GOOD
Adoption
POOR
Adoption
GOOD
Adoption
POOR
Modify BMP
Promotion
Re-evaluate
Appropriateness
of BMPs
Rule Writing:
Water Resource
Protection
Requirements
Continue BMP
Promotion
Regions of Minnesota Where Nitrates are
Commonly Found in Groundwater
Percent
0 - 2.0
2.1 - 4.0
4.1 - 6.0
>6
N
40 0 40 80 Kilometers
Percentage of wells
exceeding 3 mg/L.
MDH County Well
Index nitrate
results summarized
by agroecoregion.
(Map courtesy of
Dr. David Mulla,
UM)
N
40 0 40 80
ec
5
-9
-9
95
Year
ec
-0
0
00
-0
M 0
ar
-0
1
Ju
l0
N 1
ov
-0
1
D
ug
pr
-
Well # 9
A
Well # 6
A
-9
Se 9
p99
M
ay
M 5
ar
-9
6
Ju
l9
N 6
ov
-9
6
Fe
b9
Ju 7
n9
O 7
ct
-9
Ja 7
n98
D
ug
10
pr
-
12
A
Nitrate-N (mg/l)
14
A
n9
M 4
ay
-9
Se 4
p94
Ja
St. Peter Source Water Protection Area
10 mg/L Health
Standard
North Water Plant
South Water Plant
Trend Line
8
6
4
2
0
Community Water Suppliers Currently
Responding to Nitrate Problems
Park Rapids
Perham
Lincoln Pipestone
Rural Water System
Edgerton, Luverne,
Adrian, Fulda
Cold Spring
St. Peter
Hastings
Irrigators in the Perham’s Source Water
Protection Area Responded to Water Quality
Challenges!
Perham Case Study
Nitrate-N (mg/L)
Perham Volunteer Well Sampling 1993 - 2004
20
15
10
5
0
94 \95 \96 \97 \98 \99 \00 \01 \02 \03
\
4
4
5
3
5
6 05 05
5
6
Sampling Dates
1196 Samples
Changes in MN Tonnage Fees Since 1989
(Not Including “Cleanup” Programs)
$0.35
Fee per Ton
$0.30
$0.25
$0.20
Fee increase proposed
Tonnage Fees
by MDA approved
2004-05 Session
Groundwater
Protection
Act was
passed
$0.15
$0.10
$0.05
$Pre-1990
1990 to 2004
2005
MDA Staffing Projections-Responding to Nitrate
Issues using Fertilizer Funds
2005-2007
Central SandsCurrently
staffed
SW –One FTE
needed for this
region
Mississippi
CorridorCurrently
staffed parttime
SE KarstOne FTE
needed for
this region.
Current Midwest Fertilizer Tonnage Fees
Note that these figures includes the $0.15 increase to MDA starting 7/05
Fertilizer Tonnage Fees
$0.35
$0.30
$0.25
$0.20
$0.15
$0.10
$0.05
$MN
IA
WI
IL
SD
ND
Current Midwest Tonnage & Research Fertilizer Fees
Note that these figures includes the $0.15 increase to MDA starting 7/05
$0.30
$0.70
Basic Tonnage Fee
Research
Cost per Ton
$0.60
$0.50
$0.30
$0.40
$0.30
$0.20
$0.23
$0.30
$0.10
$0.30
$0.17
$0.125
$0.20
$0.125
$0.05
$-
MN
IA
WI
IL
SD
ND
Fertilizer Product Sold in Upper Midwest States
5,000,000
4,000,000
3,000,000
Helpful Conversion: Every 10
cent increase in Minnesota’s
tonnage fees translates into
$200,000 of revenue.
2,000,000
1,000,000
0
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
Short Tons of Material
1990-2003
Minnesota
Iowa
Wisconsin
South Dakota
North Dakota
Illinois
Current Fertilizer Tonnage Fees Including
“Basic”, Research, and “Cleanup”
Basic Tonnage Fee
Research
Cleanups (ACRRA)
$1.50
$1.25
$1.00
$0.68
$0.75
$0.50
$0.30
$0.30
$0.23
$0.25
$0.30
$MN
$0.17
IA
$0.30
WI
$0.125
$0.125
$0.05
IL
SD
$0.20
ND
Cost per Acre of Cropland Including Basic Fees,
Research and “Clean-Up” Type Programs
Cost per Cropland Acre
$0.20
$0.18
$0.16
$0.14
$0.12
$0.10
$0.08
$0.06
$0.04
$0.02
$0.00
MN
IA
WI
IL
SD
ND
Fertilizer Product Sold in Upper Midwest States
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
Short Tons of Material
1990-2004
Minnesota
Iowa
Wisconsin
South Dakota
North Dakota
Illinois
1200
1000
Production
800
600
400
Est. Nitrogen Sales
Applied to Grain Corn
200
1988 Drought
1993 Floods
04
20
02
20
00
20
98
19
96
19
94
19
92
19
90
19
88
19
86
0
19
Grain Corn (Millions of Bushels)
Nitrogen Use (Tons *1,000)
Minnesota Corn Production and
Nitrogen Fertilizer Use 1986-2004
Minnesota’s Nitrogen BMP Design
Statewide
Special Situations
Regional
Examples of States with Research and/or
Educational Fertilizer Check-Off Programs
•Wisconsin
Established in 1978
•Iowa
Established in 1987
•Illinois
Established in 1990
•California
Established in 1990
•Oklahoma
Established in 1989
•Oregon
•Missouri
•Michigan
Midwest Research Fertilizer Funds
(Total Revenue Generated)
Basic Tonnage Fee
Fee on N Fertilizer
provides $700,000
annually to Iowa’s
Leopold Center
$1,400,000
Revenue Generated
$1,200,000
$1,000,000
Research
Currently
MN does
not have
check off
program
WI Fertilizer
Research(1/3), DNR
(1/3), and Nutrient &
Pest Management
(Extension) (1/3)
Illinois Fertilizer and
Education Council
distributes over
$450,000 annually
$800,000
$600,000
$400,000
$200,000
$-
MN
IA
WI
IL
SD
ND
Wisconsin Fertilizer Fees
fund a variety of programs
Funds Generated by Wisconsin
Fee Structure ($/Year)
$377,513
Basic Tonnage
Fee (DATCP)
Groundwater
Fees (DNR)
Research (Fert.
Res.Council)
$125,838
$125,838
$125,838
Extension
Outreach (NPM)
Considerations in Designing a Fertilizer
Check-Off Program
Who can compete
for the funds?
Land Grants?
Agencies?
Commodity Groups?
The Board
…Who and How?
Governing
Rules?
Will the
program fund
research,
outreach or
both?
The Research
Review Process?
Peer Review?
Possible Discussion Topics at Future Ag
Nutrient Task Force Meetings
• How are Fertilizer Check-Off Programs in
other states structured?
• Additional details and examples of how
MDA responds to areas of Minnesota
impacted by groundwater problems.
• What other information does the Task
Force need?
Fertilizer Product Sold in Upper Midwest States
1990-2004
4,000,000
3,000,000
Minnesota
Iowa
Wisconsin
2,000,000
South Dakota
1,000,000
North Dakota
0
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
Short Tons of Material
5,000,000
Illinois