Western Producer - October, 2009

Conflicting Environmental Policies Are Common…Why?

Ecological Goods & Services – An Emerging Agricultural Market

What Are Ecological Goods And Services (EGS)? Why Are They Important to Value? Who Benefits From Their Valuation? Where And How Are EGS Being Valued? EGS in a Carbon Conscious World…

What  Are  Ecological  Goods  &  Services?  

Goods…    •  Food  (crops,  livestock)  •  Timber  and  Fibre  •  Clean  Water  •  Healthy  Air  •  FerDle  Soil  •  Fish  and  Wildlife  •  Biodiversity  

Services…    •  Photosynthesis  •  Water  PurificaDon  •  Flood  Control  •  Air  Quality  RegulaDon  •  Carbon  SequestraDon  •  Erosion  Control  •  DecomposiDon  •  DetoxificaDon  •  Nutrient  Cycling  •  PollinaDon  •  Pest  Control  

Note:  EGS  =  ‘Natural  Capital’  

Why  Are  EGS  Important  To  Value?    

•  Critical to long term human well-being

•  EGS largely taken for granted until recently

•  EGS are being lost at non-sustainable rate

•  Lost EGS are expensive to replace

•  Some may be impossible to replace…

Honeybee  Economics  -­‐  PollinaDon  

•   150+  food  crops  in  North  America  require  pollinaDon  •   PollinaDon  of  crops  in  the  U.S.  worth  ~  $14  billion/year  •   The  Honeybee’s  contribuDon  is  $8  billion/year  •   Wild  Honeybees  have  declined  >25%  since  1990  •   DomesDc  Honeybees  have  declined  >50%  since  1945  •   ConDnuing  declines  in  pollinators  are  leading  to  higher  costs        for  food  and  disrupted  ecosystems  

Economy  

Environment   Economy  

Environment  EGS  

EGS Valuation Promotes Integration of Environment and Economy

Weak  Sustainability   Strong  Sustainability  

Who  Benefits  From  Valuing  EGS?    

 To  Date:    •  Benefits  of  EGS  enjoyed  by  society  largely  for  free    •  Costs  of  producing  EGS  borne  mostly  by  producers  

In  The  Future:    •  Agricultural  producers  should  be  finally  recognized  and  

compensated  by  society  for  their  efforts  in  conserving  EGS…    

0

10

20

30

40

50

60

70

Farm Non-FarmRural

Urban

No (%)Yes (%)Maybe (%)

Public  Opinion:  Should  Producers  Be  Paid  to  Produce  EGS    On  Their  Land?  

Where  And  How  Are  EGS  Being  Valued?  

•  EGS  Programs  in  Europe,  Australia,  United  States,  Canada  (MB,  ONT,  PEI,  AB,  SK  -­‐  2011)  

•  Programs  compensate  agricultural  producers  for  maintaining/creaDng  areas  providing  EGS  

•  Example  1:  New  York  City  Water  Supply  

•  Example  2:  ALUS  (AlternaDve  Land  Use  Services)  –  Delta  Waterfowl  

   

Agricultural producers in the watersheds providing clean water to 9 million people in NYC are paid to maintain EGS…over 70,000 acres since 1997…

Alternative Land Use Services (ALUS) – Some Key Features - Stewardship of EGS benefits society so should be assigned a fair market value - Farmers and ranchers are in the best position to deliver EGS. They should lead with local and other partners - Producers receive payments to maintain and deliver EGS - Promotes decision making at community level - bottom up - Independently monitored and audited (e.g. by crop insurance)

Why  Do  We  Need  EGS  Programs  Like  ALUS?  

1995  –  Somewhere  in  MB   10  Years  Later…  

Two Common Misconceptions

1.  “Programs like ALUS Pays Farmers and Ranchers for Doing Nothing” – No, it’s a Future Investment That

Pays for Maintenance of EGS… 2.  “They Would Have Done it Anyway” – Not Always –

Remember the Last Slide? Producers Respond to Market Signals…