Brief Overview of MDA’s Non-Point Program and Midwest

Fertilizer Fees

Bruce MontgomeryMN 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

AdoptionGOOD

AdoptionPOOR

AdoptionPOOR

EffectivenessGOOD

EffectivenessPOOR

Rule Writing: Water Resource

Protection Requirements

Re-evaluate Appropriateness

of BMPs

Modify BMPPromotion

Continue BMPPromotion

EffectivenessPOOR

AdoptionGOOD

EffectivenessGOOD

3 Phases: BMP Promotion, Evaluation, Response

SusceptibilityInsufficient DataLowMediumHighVery High

Percent

0 - 2.02.1 - 4.0

4.1 - 6.0> 6

N

40 0 40 80 KilometersN

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)

Regions of Minnesota Where Nitrates are Commonly Found in Groundwater

St. Peter Source Water Protection Area

0

2

4

6

8

10

12

14

Year

Nit

rate

-N (

mg

/l)

Well # 6

Well # 9

North Water Plant

South Water Plant

Trend Line

10 mg/L Health Standard

Community Water Suppliers Currently Responding to Nitrate Problems

Lincoln Pipestone Rural Water System

St. PeterPerham

Cold Spring

Edgerton, Luverne, Adrian, Fulda

Hastings

Park Rapids

Irrigators in the Perham’s Source Water Protection Area Responded to Water Quality

Challenges!

Perham Case Study

Perham Volunteer Well Sampling 1993 - 2004

0

5

10

15

20

Sampling Dates

Nit

rate

-N (

mg

/L)

1196 Samples

Changes in MN Tonnage Fees Since 1989 (Not Including “Cleanup”

Programs)

Tonnage Fees

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

Pre- 1990 1990 to 2004 2005

Fee

per T

on

Groundwater Protection Act was passed

Fee increase proposed by MDA approved 2004-05

Session

MDA Staffing Projections-Responding to Nitrate Issues using Fertilizer Funds

2005-2007

Central Sands-Currently

staffed

Mississippi Corridor-Currently

staffed part-time

SE Karst-One FTE needed for this region.

SW –One FTE needed for this

region

Current Midwest Fertilizer Tonnage FeesNote that these figures includes the $0.15 increase to MDA starting 7/05

Fertilizer Tonnage Fees

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

MN I A WI I L SD ND

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

MN IA WI IL SD ND

Cos

t pe

r Ton

Basic Tonnage Fee Research

$0.30

$0.30

$0.17

$0.23

$0.30

$0.30 $0.125

$0.125

$0.05

$0.20

Current Midwest Tonnage & Research Fertilizer FeesNote that these figures includes the $0.15 increase to MDA starting 7/05

Fertilizer Product Sold in Upper Midwest States

1990- 2003

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Shor

t Ton

s of M

ater

ial

Minnesota

Iowa

Wisconsin

South Dakota

North Dakota

Illinois

Helpful Conversion: Every 10 cent increase in Minnesota’s tonnage fees translates into

$200,000 of revenue.

$0.30$0.17

$0.30$0.125 $0.05

$0.20

$0.23

$0.30

$0.68

$0.125

$0.30

$-

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

MN IA WI IL SD ND

Basic Tonnage Fee Research Cleanups (ACRRA)

Current Fertilizer Tonnage Fees Including “Basic”, Research, and

“Cleanup”

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

$0.16

$0.18

$0.20

MN I A WI I L SD ND

Co

st

pe

r C

rop

lan

d A

cre

Cost per Acre of Cropland Including Basic Fees, Research and “Clean-Up” Type

Programs

Fertilizer Product Sold in Upper Midwest States

1990- 2004

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Shor

t Ton

s of M

ater

ial

Minnesota

Iowa

Wisconsin

South Dakota

North Dakota

Illinois

0

200

400

600

800

1000

1200

Gra

in C

orn

(M

illio

ns

of B

ush

els)

Nit

roge

n U

se (

Ton

s *1

,000

)

Est. Nitrogen SalesApplied to Grain Corn1988 Drought 1993 Floods

Minnesota Corn Production and Nitrogen Fertilizer Use 1986-2004

Production

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)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

MN I A WI I L SD ND

Rev

enue

Gen

erat

ed

Basic Tonnage Fee Research

Currently MN does not have check off program

Fee on N Fertilizer provides $700,000 annually to Iowa’s

Leopold Center

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

Funds Generated by Wisconsin

Fee Structure ($/Year)

$377,513

$125,838

$125,838$125,838

Basic TonnageFee (DATCP)

GroundwaterFees (DNR)

Research (Fert.Res.Council)

ExtensionOutreach (NPM)

Wisconsin Fertilizer Fees

fund a variety of programs

Considerations in Designing a Fertilizer Check-Off Program

Will the program fund

research, outreach or

both?

The Board …Who and How?

Governing Rules?

The Research Review Process?

Peer Review?

Who can compete for the funds?Land Grants?

Agencies? Commodity

Groups?

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

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Sho

rt T

ons

of M

ater

ial Minnesota

Iowa

Wisconsin

South Dakota

North Dakota

Illinois