Nitrogen Credit Trading as Payment for Ecosystem Service for Riparian Buffer Establishment on

Pennsylvania Farmland

Patrick J. Boleman & Michael G. JacobsonPennsylvania State University

Pennsylvania State University

Data Source: Chesapeake Bay Program, Watershed Model 5.3.2 (2014)

267 Mil lbs/yr (Total)

(121 Mil kg/yr)

267 Mil lbs/yr (Total)

Pennsylvania (2014)44% of Total N

(117 Million lbs/yr)

PA Agriculture (2014)24% of Total N

(65 Million lbs/yr)

(121 Mil kg/yr)

Data Source: Chesapeake Bay Program, Watershed Model 5.3.2 (2014)

Agricultural Riparian Buffers

Nitrogen Reduction from Buffers:

• Intercept surface runoff and subsurface leaching

• Vegetative uptake

• Microbial denitrification

PA Riparian Forest Buffer Initiative:• 95,000 additional acres by 2025

Source: North Carolina State University

Riparian Buffer ScenariosScenario Schematic

Forest Buffers NOT profitable• However provide greater nitrogen reduction

• Greater ecosystem services

Grass Filter Strips MAY be profitable• Potentially only in riparian areas unsuitable

for maize production

Conclusions

Nitrogen credit trading alone not sufficient PES.

Combining with other programs may increase incentive.

• Bundle Credits

• Conservation Reserve Enhancement Program (CREP)

Conclusions

• Additional sources of revenue• Non-Timber Forest Products

• Biomass

• Nitrogen Credit Supply Curves

Next Steps

Source: Chesapeake Bay Foundation

References:

1. Chesapeake Bay Program. Watershed Model 5.3.2 Data

Thank you.

EXTRA SLIDES

Payment for Ecosystem Services

Source: Forest Trends