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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…