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Five Years of Data Reveal Higher Profitability for Ag Water Quality Certified Farms

Farmers also saw other improved financial metrics compared to non-certified farms

St. Paul, MN: Farmers enrolled in the Minnesota Agricultural Water Quality Certification Program (MAWQCP) have higher profits than non-certified farms, according to five years of data from the Minnesota State Agricultural Centers of Excellence.

The “Influence of Intensified Environmental Practices on Farm Profitability” study examines financial and crop and livestock production information from farmers enrolled in the Minnesota State Farm Business Management education program. The 126 MAWQCP farms in the study saw more gross cash farm income and net farm income in 2023 than non-certified farms. Looking at five-year average data, the average net cash income for MAWQCP farms was over $213,600 compared to nearly $163,000 for non-MAWQCP farms. Other key financial metrics are also better for those enrolled in the MAWQCP, such as debt-to-asset ratios and operating expense ratios.

The five years of data serve as an indicator of a positive return on investment for whole-farm conservation management that farmers implement to become certified.

“We now have continuous data that shows the Minnesota Ag Water Quality Certification Program provides better economic outcomes on top of the benefits to our water and soil resources,” said Agriculture Commissioner Thom Petersen. “With so many advantages to the MAWQCP, I encourage all farmers and landowners to look into certifying their land and contact their local Soil and Water Conservation District for more information.”

“The MAWQCP producers participating in Farm Business Management can enhance farm profitability by benchmarking various aspects of their farm operations,” said Keith Olander, Executive Director of AgCentric, and Agricultural Partnerships. “This study shows that these producers operate with a higher level of efficiency compared to their peers.”

To find details on the economic study, visit: https://www.agcentric.org/farm-business-management/annual-fbm-reports/.

The MAWQCP puts farmers in touch with local conservation district experts to identify and mitigate any risks their farms pose to water quality on a field-by-field basis. Producers going through the certification process have priority access to financial assistance. After being certified, each farm is deemed in compliance with new water quality laws and regulations for 10 years.

Since the program’s statewide launch in 2016, the 1,500 Minnesota Agricultural Water Quality certified farms have added more than 2,915 new conservation practices that protect Minnesota’s waters. Those new practices have kept over 48,250 tons of sediment out of Minnesota rivers while saving 144,125 tons of soil and nearly 60,375 pounds of phosphorous on farms each year. The conservation practices have also reduced nitrogen loss up to 49% and cut greenhouse gas emissions by over 58,250 tons per year.

Farmers and landowners interested in becoming water quality certified can contact their local Soil and Water Conservation District or visit MyLandMyLegacy.com.

 

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