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Innovative Funding for Agricultural Best Management Practices
Using the CWSRF
COVER CROP INTERSEEDING
FOR CLEAN WATER IN NORTHEAST KANSAS
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A pilot project of the Environmental Protection Agency's Clean Water State Revolving Fund
March 2020
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Contents
Introduction 3
O The Kansas Nonpoint Source Pilot Project 6
O Overview 8
O Local ASPs that Glacial Hills is Engaging 9
O Loan Structuring 11
Marketing and Outreach Campaign 14
O Anticipated Project Benefits 16
O Improved Soil Health and Water Quality 18
O Increased Water Efficiency 20
O Leading by Example: State Approaches to Funding Cover Crop Interseeding 21
O Delaware 22
O Sussex County Conservation District, Delaware 22
Minnesota 24
Rice Soil & Water Conservation District (Rice County, Minnesota) 24
Scott County Soil & Water Conservation District Agricultural Equipment Rental Program
(Scott County, Minnesota) 28
Minnesota Agricultural Best Management Practices Program 32
Washington 34
Spokane Conservation District's No-Till Custom Seeding Program (Spokane, Washington) 34
Leveraging State Mandates for Nutrient Reduction to Help Increase Program Interest and Demand 38
O Best Practices for Program Implementation and Oversight 40
O Bring it All Together 42
O Endnotes 44
O Appendix A: Kansas CWSRF Interseeder Program Marketing & Outreach Materials 45
O Appendix B: Rice County SWCD Marketing & Outreach Materials 47
Appendix C: Washington Department of Ecology & Spokane County Conservation District
Loan Process 51
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Introduction
The nexus between agricultural operations in the United States
and water quality grows ever more critical as large swaths of
the country face challenges from drought and flooding, while
downstream neighbors grapple with algal blooms and hypoxic
waters impacted by increased levels of nitrogen and phosphorus.
There is an inherent interconnect between
the agricultural industry, local economies, and
environmental and public health that require
investments in innovative, alternative approaches
to address these challenges. The Clean Water State
Revolving Fund (CWSRF) and §319 Grants programs
can be tapped for much needed funding to apply a
vast array of project types, including agricultural best
management practices (BMPs) such as cover crop
interseeding. When widely adopted, this approach can
protect water quality by improving the integrity of the
soil profile over time, conserving water resources with
less irrigation, and reducing the volume of fertilizer
application to crops.
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The use of cover crops is a time-tested strategy used by agricultural producers to perform multiple
functions simultaneously: prevent soil erosion, reduce surface runoff, increase soil fertility and
organic matter, promote nitrogen fixation, and provide carbon sequestration and habitat for
pollinators. Using more advanced application techniques beyond drilling include high-clearance
interseeding between rows of standing cash crops, which increases efficiency and reduces operational
costs for farmers in the long run. All these outcomes are a boon to improving water quality and
potentially to the economic prosperity of agricultural operations. This approach is encouraged as a
practice to help states implement their nutrient management plans, and with the help of financial
support from programs like the CWSRF and the §319 Grants Program, finding a receptive audience
among farmers facing challenges with technical knowledge, time constraints and financial burdens.
In 2019, the Kansas Department of Health and Environment (KDHE) forged a partnership between
its CWSRF, the Bureau of Watershed Management, Glacial Hills Resource Conservation and
Development, and the City of Wetmore to establish a new CWSRF Interseeder Program in northeast
Kansas. This effort was funded by the EPA's Nonpoint Source Management Program in the Office
of Wetlands, Oceans and Watersheds, and this report follows the journey of the Kansas CWSRF
Interseeder Program and its genesis. It also provides numerous examples from across the country
of successful agricultural equipment leasing programs that have either received seed money to
establish such programs through the State Clean Water State Revolving Fund (CWSRF), the Nonpoint
Source §319 Grant Program, or financial assistance provided by a state agency. The collection of
options curated in this report explore best practices for establishing a similar program to promote
conservation farming practices using cover crops in Nemaha County, Kansas.
The states represented in this report are operating under legislative
mandates to reduce nutrient loading of surface waters, such as the Kansas
Surface Water Nutrient Reduction Plan. The strategic plans that each of these states have crafted bear
a specific focus on agricultural practices and seek to incentivize local farmers and producers to adopt
systems of conservation practices to improve the integrity of the soil, reduce erosion and runoff,
and support strong partnerships within watersheds. These plans can be instrumental in carving out
pathways for a new program to promote adaptive management practices through targeted education
and outreach, as well as establishing methods for tracking progress and measuring benefits.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
it The use of cover crops is
a time-tested strategy used
by agricultural producers to
perform multiple functions
simultaneously.
Clean Water State Revolving Fund
Cover Cover Crop Interseecling for Clean Water in Northeast Kansas
March 2020
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
The Kansas Nonpoint
Source Pilot Project
How it all began ...
The heartland faces many challenges to keep American farms productive and thriving: drought, floods, diminished
soil quality, and the balance between protecting water quality and safeguarding crop yields. To do so, suites of
agricultural conservation practices should be implemented to improve water quality and maintain yields. Many
of these practices focus on improving soil health and nutrient management. The practices available to farmers
are broad and typically specific to either livestock operations or crop production. For Kansas, many of the best
options involve approaches like conservation tillage, cover crops, and direct-seed applications to help restore soil
productivity, reduce runoff, and conserve valuable water resources. But the equipment needed for such approaches
can be quite expensive , often precluding many small farming operations from adopting these practices.
As the saying goes, "necessity is the mother of invention," which is how the Kansas CWSRF Interseeder Program
was born. KDHE's Bureau of Watershed Management wanted to promote agricultural BMPs to support the state's
Surface Water Nutrient Reduction Plan, among them being the use of cover crops using high-clearance interseeding
equipment, otherwise known as "high boy" interseeders. Glacial Hills Resource Conservation and Development
Region, Inc. ("Glacial Hills"), a non-profit organization located in Nemaha County in Northeast Kansas was interested
$
Clean Water
Clean Water State Revolving Fund
Cover Crop Interseeding for Clean Water in Northeast Kansas
March 2020
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in establishing an equipment leasing program for cover crop interseeding to help promote the practice by allowing
farmers to try it out before making large financial investments in purchases of such equipment. This mutual interest
brought KDHE and Glacial Hills together where they collaborated on how to go about putting such a program
together, what it would cost, what level of effort would be required, and what critical partnerships needed to be
developed.
Finding the funding for such an enterprise could be challenging as Hagie high-clearance interseeder equipment
doesn't come cheap and 319-grant funding likely would not be capable of covering ali these costs alone. This brought
the Kansas CWSRF into the picture with ample available funding that could be applied toward agricultural projects
that provide water quality benefits. Furthermore, the project could be advantageous for the CWSRF's ability to meet
its Green Project Reserve (GPR) requirement, a federal mandate for the program to commit at ieast 10 percent
of its federal appropriation to projects that promote green infrastructure, water conservation, water efficiency, or
environmentally Innovative activities. The project scope of the CWSRF Interseeder Program satisfied the eligibility
criteria by implementing agricultural practices that promote water efficiency and conservation, reduce nutrient and
sediment runoff, and improve water quality. This project would allow the Kansas CWSRF to meet its GPR goal for not
just one year, but for 2017, 2018 and a portion of the 2019 requirement.
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Overview
Glacial Hills has long been a partner in sponsoring nonpoint source 319 watershed
projects in Nemaha County (Figure 1). Through the CWSRF Interseeder Program,
Glacial Hills will be able to work directly with local agricultural service providers
(ASPs) to purchase, deploy, and operate five Hagie high-clearance cover crop
seeding machines to benefit water quality in the Delaware River and Tuttle Creek
Lake watersheds.
Figure 1. Map showing the generai location of
Nemaha County in the northeast corner of Kansas
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Local ASPs that Glacial Hills is Engaging
Ag Partners Co-Op
https://www.agpartnerscoop.com
©
Farmers Cooperative
https://www.farmersco-operative.com
Jackson Farmers Inc
https://jacksonfarmers.com
Central Valley Ag
https://www.cvacoop.com
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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The ASPs will work directly with agricultural producers to provide the custom cover crop
interseeding service. Because the CWSRF loan will pay for the purchase of the Hagie high-
clearance interseeder equipment, ASPs will be able to charge much less per acre to provide these
services, thus mitigating risk for farmers interested in trying cover crops for the first time while
allowing them to realize the benefits of this practice firsthand. This practice also increases local
economies of scale, making use of this equipment affordable and accessible to more Kansas
farmers.
The long-term benefit to farmers will be demonstrated as use of cover crops begins to reduce
crop input costs such as fertilizer and pesticides. Therefore, even when the project ends,
agricultural producers are likely to continue to use cover crops as a practice as a result of these
economic benefits. The ASPs will benefit by developing a new line of business that extends much
beyond the useful life of the seeding equipment. Once the customer base has been established,
ASPs will be able to purchase their own interseeding equipment in the future and charge a higher
rate. Farmers will still be able to participate using the economic returns they receive as a result of
reduced crop input costs.
The project also leverages itself as the equipment continues to retain value after the initial project
period. Used interseeding equipment can be sold to the ASPs who were involved in the project,
or it can be sold on the open market where used farming equipment is a highly sought-after
commodity. The sales proceeds from this equipment will be used to support another round
of new seeding equipment purchases and
opportunities to engage new partners. In this
way, the project will continue to support two
additional rounds of equipment purchases
and partnership development with each round
becoming progressively smaller. The end goal
of the project is to reach a stasis of county-wide
adoption of cover crop interseeding practices
and equipment ownership.
Photo of Hagie interseeder field demonstration
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Loan Structuring
The Kansas CWSRF cannot make a loan directly to Glacial Hills due to a regulatory restriction
that requires all loans to nonpoint source projects be made to an entity with taxing authority.
This CWSRF eligibility challenge would require the use of an alternative financing mechanism
to overcome this obstacle. KDHE elected to use a pass-through lending model, one of the most
efficient and effective alternative lending mechanisms available to SRF programs. This resulted
in the development of a functioning public-private partnership between KDHE, Glacial Hills,
and the City of Wetmore.
For pass-through loans, a CWSRF program makes a loan to another public entity, such as the
City of Wetmore, that then provides funding to private borrowers for projects. The City acts
as an intermediary by providing loans or grants to eligible projects (e.g., nonpoint source
projects, including agricultural BMPs). The City repays the CWSRF loan to the State. Figure 2
illustrates the basic mechanics of how pass-through loans work.
Figure 2
Pass-Through Loans
CWSRF
CWSRF provides
loans to local or
state agency
CWSRF receives
loan repayment
Government Agency
Low-interest
loan or grant to
borrower
Borrower repays
agency for any
loans
Borrower
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Cover Cover Crop Interseecling for Clean Water in Northeast Kansas
March 2020
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For the Kansas CWSRF Interseeder Program, the loan will be made between the City of Wetmore and
KDHE for $3.5 million with 100% loan forgiveness and a one-year term. The City agreed to participate
as a conduit lender knowing that the project will have a positive impact on their municipal water
supply, which is fed by a targeted stream corridor in the Delaware River watershed. Since the entire
principal amount of the loan will be forgiven, Glacial Hills will reimburse the City for 30 days of interest
charges accrued. The City will submit all requests for CWSRF funding disbursements to KDHE for all
eligible expenses incurred by Glacial Hills, maintain accounting records, and submit a final report to
KDHE upon completion of the project. Glacial Hills will do the following:
Glacial Hills Responsibilities
o
Serve as a
subcontractor
to the City for
administration and
performance of the
project
O
Complete and
submit all forms
and documents
required for the
CWSRF application
to KDHE
o
Oversee the
bidding process
for the purchase
of equipment and
complete all bid
documents for use
by the City
Glacial Hills will work with ASPs in the area to purchase, deploy, and operate the
cover crop seeding equipment.
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Photo of a demonstration meeting
o
o
o
Oversee and
complete the
scope of work
and reporting
requirements set
forth in the loan
agreement between
KDHE and the City
Reimburse the City
for any legal costs
incurred during the
project
Reimburse the City
for all interest costs
incurred under
the CWSRF loan
agreement with
KDHE
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Marketing and Outreach
Campaign
Over the last five years, KDHE has focused on practices that improve soil health for agricultural
BMP implementation. The state has seen watershed groups provide more than $100,000 in cost-
share to agricultural producers in targeted sub-watersheds for seed and planting of cover crops.
State programs like the Kansas Reservoir Protection Initiative and federal programs such as NRCS-
EQIP have provided millions of dollars in funding for producers to implement cover crops in these
watersheds. Numerous workshops and field days are conducted throughout the state each year to
promote the utilization of cover crops and KDHE prepares flyers, notices, and marketing materials
to spread the word about upcoming events (Appendix A). Participation by agricultural producers
has been good with 120 in attendance at the winter 2019 workshop event at the Nemaha County
Community Building in Seneca, Kansas, and 40 in attendance at a subsequent summer field day event
held in June in Axtell, Kansas.
Iriterseeded cover crops three weeks after
planting. Picture taken September 6, 2019.
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Marketing and Outreach, continued
The Tuttle Creek Cover Crop Field Demonstration was held in August at the Buessing Farm near Axtell,
Kansas, to showcase the effectiveness of the Hagie Interseeder equipment. Maurice Buessing, an
experienced and dedicated cover crop farmer, led a presentation and interactive Q&A session for
40 producers to share his personal experience in using cover crops, best practices for termination,
and methods for planting fall crops. In addition, a live interseeding demonstration (in which over
800 acres were planted) took place near Axtell on August 13-15, 2019. The field demonstration also
included information on the best seed mix to use, the appropriate ratios required for the mixture, and
recommended application rates per acre, as shown in Figure 3.
Figure 3. Custom Seed Mix and Application Rates
Kansas CWSRF Interseeder Program Field Demonstration
Custom Cover Crop Seed Mix and Application Rates
(54 pounds per acre)
Species
lb/acre
% by wt
Origin
Germ
Purity
Seeds/lb
Seeds/ac
Balansa Clover: Fixation
2
2.00%
OR
85%
53.03%
500,000
1,000,000
Crimson Clover: Dixie
1
1.80%
OR
89%
99.85%
107,200
107,200
Cereal Rye: Elbon
38
70.00%
KS
90%
99.46%
23,000
874,000
Annual Rye Grass:
Winterhawk
9
16.30%
OR
90%
98.00%
190,000
1,710,000
Daikon Radish: Nitro
3
5.50%
OR
95%
99.20%
25,000
75,000
Rapeseed: Trophy
1
1.80%
ID
96%
99.60%
175,000
175,000
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KDHE continues to follow up with the producers involved in the demonstration to document their
thoughts, but the initial feedback has been overwhelmingly positive. Many additional producers in the
watersheds have inquired about the availability of these machines in the future. A local agricultural
retailer who provided logistical support during the demonstration event also expressed interest in
providing interseeding services to their growers.
Using a market-based approach to effectively increase the adoption of soil health principles using
cover crops requires the right partnerships. KDHE has developed relationships with agricultural
retailers who will undertake much of the marketing and outreach efforts, including development of
brochures and fliers, and coordination and facilitation of informational meetings to sell interseeding
services. KDHE expects to launch a parallel educational component for producers using the service
as well as retail staff providing the service. This is being funded by a separate grant provided by an
educational consortium that teaches soil health principles. Due to the strong history of cover crop
adoption, the availability of incentive programs, continued outreach and education efforts, and a
successful demonstration project, Kansas has every reason to believe that continuing this CWSRF
program over the long term will be successful.
Anticipated Project Benefits
The CWSRF Interseeder Program for Clean Water in Northeast Kansas offers important environmental
benefits that allow this project to fulfill the Kansas CWSRF program's GPR requirement and helps
to implement the Kansas Nonpoint Source Management Plan by using cover crop interseeding to
prevent or remediate nonpoint sources of pollution within the Tuttle Creek and Delaware River
priority watersheds.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
These activities included in the project will support the Kansas/EPA-approved 9-Element Watershed
Plans which contain precise water quality monitoring components including monitoring locations,
duration, frequency, and milestones for reaching long-term water quality goals and TMDL de-listings
over time. These plans will be used to estimate and later quantify the water quality benefits realized
by adopting the cover crop interseeding practices offered through the new program.
The $3.5 million CWSRF loan will allow the program to purchase seven Hagie Interseeders, with each
machine contractually required to plant at least 10,000 acres of cover crop each year in the Tuttle
Creek and Delaware River watersheds. Acreage to be planted is expected to be split evenly between
the two watersheds, thus resulting in significant reductions of nitrogen, phosphorus, and sediment
loadings to surface waters in each respective watershed as shown in Figure 4. The program will be
incubated in the northeast region of the state with plans for further statewide expansion in the future
as demand for this assistance grows.
Figure 4. Anticipated Water Quality Benefits
The seven interseeders are
contractually required to
plant at least 10,000 acres of
cover crop each year.
Annual load reductions for
70,000 acres of cover crop are:
136,639
pounds of
Nitrogen
Planted acres will be evenly split between
Tuttle Creek Watershed and Delaware
River Watershed. Each watershed will
reduce:
34,201
pounds of
Phosphorus
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Improved Soil Health and Water Quality
Healthy soil profiles are integral to surface
water quality. Unfortunately, over the course of
many years of conventional farming practices,
the quality of the nation's agricultural soils has
become severely degraded. Healthy soils are
measured by the percentage of organic matter
they contain. Over time, heavily tilled soils in
Kansas have lost 75% or more of their organic
matter by volume; 7-8% in intact soils has been
reduced to only 1 -2% after being tilled for
many years. This loss of organic matter greatly
diminishes a soil's ability to properly cycle
nitrogen, promote growth of beneficial bacteria,
and immobilize ammonia and nitrates.1
Damaged soil structure cannot adequately
infiltrate and store precious water, and
proper plant growth must be supplemented
by fertilizers and irrigation. This, in turn,
creates challenges for managing increased
nutrient runoff and protecting water quality.
The CWSRF Interseeder Program provides
the necessary equipment and education for
implementing healthy soil practices through a
market-based approach that has the potential
to restore degraded agricultural soils. Runoff
from storm events will be slowed, thus
reducing erosion while maintaining a healthy
aquatic habitat (Figure 5).
Interseeded cover crops seven weeks after
planting. Picture taken October 2, 2019.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Figure 5. Healthy Soil from Cover Crops
Cover Crops Build
Atmospheric Nitrogen
^Nitrogen fixation^ ^
-A'
( Plant )
f f Organic \
/ I Matter+ I *
' \Decomposers/ \
xv
Ammonia \
AmmomunT-*
V
\
^ ~ ^
/ I Denitrification 1
^¦0.. /'
Nitrate
-0-
/ i \
I Nitrification m
Cover crops
scavenge
nitrogen
from the soil
and prevent
leaching
Source: Based on a diagram by Soloneski, Sonia & Larramendy, Marcelo (2018). Emerging
Pollutants - Some Strategies for the Quality Preservation of Our Environment.
A1% increase in organic matter &
healthy soil can infiltrate and store up to
25,000 gallons of water per acre2
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Increased Water Efficiency
Over time, the use of cover crops increases organic matter in the soil, which improves the soil's ability
to infiltrate and retain water, thereby decreasing the amount of irrigation required. Cover crops also
reduce the soil temperature at the surface, which creates a micro-climate that is more conducive to
plant growth. Restoration of a healthy soil profile via cover crops will allow much more of any irrigation
water to be used for plant growth rather than becoming lost to runoff or evaporation. This provides
an important nexus to mitigating the long-term effects of climate change because cover crops help
to restore the water cycle which governs 95% of the greenhouse effect on earth. Furthermore, cover
crops can provide effective carbon sequestration within the soil by increasing the amount of organic
matter it contains.3
Under the Interseeder Program agreement, agricultural retailers are required to provide application
area maps for each field that has been seeded with each of the five machines. They must also provide
the following information to KDHE:
Number of acres planted
Producer name
Producer contact information
Total acres per producer implementing cover crops
This information will help KDHE build a database to identify spatial gaps in cover crop implementation,
thus increasing the CWSRF Interseeder Program's ability to specifically target those areas, if needed, in
the future.
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Leading by Example:
State Approaches to Funding
Cover Crop Interseednng
The efforts undertaken by the Kansas pilot project are part of a growing number of similar programs
for the adoption and implementation of cover crop BMPs across the nation. This chapter illustrates
how other states are successfully implementing cover crop interseeding programs—funded both
inside and outside of the CWSRF—that provide a cache of useful examples, practices, and lessons
learned to help any state successfully establish similar agricultural BMP funding programs. The
examples presented here may be used to help stand up new cover crop interseeding programs
elsewhere.
Photo of Tuttle Creek field demo
Clean Water State Revolving Fund
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Delaware
Sussex County Conservation District
Delaware
The Sussex Conservation District (SCD) has an air seeder cost-share program
which allows growers to rent the air seeder and purchase custom cover crop
seed blends. Growers who participate in the program must agree to plant cover
crops into a standing cash crop prior to harvest using the District's custom cover
crop blend applied at the recommended rates. Participants may self-certify to the
District in writing that the program provisions have been met. The District provides
the operator and coordinates all fuel and equipment maintenance.4
Clean Water State Revolving Fund
Cover Crop Iriterseeclirig for Clean Water in Northeast Kansas
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Key Features of the Sussex
Conservation District
Program
o
0
o
o
Equipment
Miller Nitro Air Seeder 90-foot boom with specialized seed box to allow
planting of cover crops while cash crop remains in the field
Rental Rate
$11 per acre plus cost of fuel
$12 per acre if 10 or more miles outside of Sussex County
Incentives: In the first two years of the program, SCD offered $60
per acre for new air seeder customers and $50 per acre for returning
customers to encourage participation
Custom Seed Mix
Cover Crop Blend
Seeding Rates
Cost Per Pound
Radish and Crimson Clover 16 lbs/acre $1.60/lb
Rye and Radish
55 lbs/acre
$0.86/lb
Rye and Crimson Clover
Miscellaneous
65 lbs/acre
$0.80/lb
Calibration Fee: $50 if participant purchases seed from another supplier
Participants are limited to $75,000 in cover crop assistance.
If program demand or enrollment exceeds available
funding, the District may reduce the
maximum payment amount
per participant.
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Minnesota
Rice Soil & Water Conservation District
(Rice County, Minnesota)
The Rice Soil and Water Conservation District (SWCD) has long been a staunch advocate for incorporating
conservation best practices into everyday agricultural operations in Minnesota. Practices such as no-till drilling,
direct seeding, and planting cover crops are all part of the approach that Rice SWCD has successfully encouraged
local farmers to undertake as part of their normal course of business. In Spring 2019 the District launched a new
Interseed Rental Program that uses a custom-built interseeder and includes operator services, as well as custom
cover crop seed mix if desired. The program serves as a one-stop-shop for Rice County farmers, which helps
minimize machinery downtime and maximize planting regimes and schedules.
Before launching the new interseeding rental program, Rice SWCD undertook a comprehensive marketing and
outreach campaign to gauge the level of interest in such a program among local farmers. The District had been
intensively promoting soil health practices for several years leading up to the launch of the rental program and
that outreach effort continues. The outreach activities include an annual winter workshop and field day to provide
information and education on the economic and environmental benefits of cover crops. They also use polling,
surveys, and social media, and sponsor local community events to meet one-on-one with farmers. Rice SWCD knows
the power of firsthand testimonials and they make sure to include a farmer panel to share their success stories when
presenting at community and workshop events. A collection of marketing and outreach materials used by Rice SCWD
is included in Appendix B.
Clean Water State Revolving Fund
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March 2020
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Photo of an interseeder
The outreach efforts gave the district confidence that the interest in the Interseed Rental Program was sufficient to
warrant implementation. Within a few months of the program's launch, participants had already seeded 500 acres
with cover crops and were expected to complete 7,000 acres by the end of 2019. This represents 4% of the total 500
square mile cropland area in Rice County using cover crops.
Rice SWCD believes that demand is increasing and ensures that its new Interseeding rental program gets plenty
of media coverage by marketing it aggressively. Since the Rice SWCD did not take on any new staff to launch this
program, they rely heavily on their partnership with the Friends of Blue River (a local watershed group) to help with
generai marketing and promotional workshops. They also work closely with the Cannon River Watershed Partnership
(CRWP) and received a grant through the partnership to plant field demonstration cover crops on 4,000 acres
within the watershed. The District uses this demonstration project as a marketing opportunity to raise awareness
about cover crops and promote interest in their equipment rental program by co-hosting an annual Farm Field Day
with CRWP. The goal, set in 2019, was to get 25% of that watershed's cropland acreage into cover crops, which has
already been achieved. Rice SWCD will sample outlet water from these cover crop acres for nitrates and measure the
reduction values to quantify the environmental benefits of this practice.
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District Manager Steven Pahs indicates that the biggest barrier to setting up a program like
this is finding the money to do it. After that, he says it's been an easy sell among the farming
community. He emphasizes the importance of pushing a good marketing campaign and
doing a lot of workshops, outreach and education.
The Interseed Rental Program was initially capitalized using rental income from the District's
no-till drill program. Going forward, rental revenues from both programs will be combined.
Rice SWCD expects a financial loss in the first year but does expect revenues to become
sustainable with increased demand, which they expect to occur after the initial ramp-up
period. The District sought to find the sweet spot in setting competitive rental rates that
would attract participants to the new program and also cover operating costs. Rice SWCD
isn't looking to make a profit off of the program, but hopes to financially break even in the
process of getting more local farmers to try cover crops. They are considering implementing
financial modeling to help in the decision-making process and to manage program cash
flows with greater accuracy and confidence.
Understanding your audience and tailoring
your message is key. Typically, farmers really aren't
interested in and don't want to hear about the
environmental benefits of the practice, but are
more focused on what economic or production
value the practice has to offer. Focus on that.
-Steven Pahs, Rice SWCD Manager
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Key Features of the Rice
SWCD Interseeder
Program
o
0
o
Equipment
One custom-built interseeder machine valued at $16,000
Specialized to convert between 40' width with 16-row spacing and 30' width
with 12-row spacing
Rental Rate
$10 per acre for interseeder plus fuel
Rate is calculated by taking the District's costs for equipment spread out over
the number of acres anticipated to be planted over 7 years
Rice SWCD offers discounted pricing in the first year to encourage more
growers to try cover crops. Local competitors charge $12-$20 per acre.
Custom Seed Mix
$24 per acre
18 pounds rye, 2 pounds kale, 1 pound purple top turnip
Custom-developed for Rice SWCD by a cover crop specialist
Lease Agreement / Legal Protections
No liability for crop failure
Waiver of liability, hold harmless and indemnification clauses
Miscellaneous
Cleaning fee: None
Security deposit: None
Acreage Metering: Yes
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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Scott County Soil & Water Conservation
District Agricultural Equipment Rental
Program (Scott County, Minnesota)
Scott County SWCD's agricultural equipment rental program has been operating
since 1997, when it was launched using grant funding from the Minnesota
Department of Agriculture and a used no-till drill that the District purchased for
a dollar. Since then, the program has expanded its fleet of equipment to include
several no-till drills and a custom-built cover crop interseeder. Farmers typically
operate the equipment once it has been transported and delivered to the site.
Occasionally, the SWCD will perform custom cover crop work using the interseeder
equipment. The County expressed some concerns regarding liability with farmers
operating this equipment themselves, noting the importance of including the
appropriate indemnification and waiver of liability language in the rental contract
or agreement.
Scott County SWCD's mission is to increase the widespread adoption of cover crop
farming practices by allowing farmers to test these techniques before investing
money in the purchase of expensive equipment. Farmers wishing to purchase this
equipment may apply for a low interest (3%) loan from the state's Agricultural Best
Management Practices Loan Program (see page 32), effectively transitioning from
a trial basis offered by the SWCD to regular and consistent implementation of the
practice with funding made available by the CWSRF program.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Key Features of the Scott
County SWCD Program
o
0
Equipment
Brillion Sure Stand Seeder with 10-foot planting width and broadcast row
width
John Deer 1590 No-Till Drill with 15-foot planting width and 7.5-inch row
width
Rental Rate
$8 per acre (15-acre minimum) plus a $120 drop fee
Lease Agreement / Legal Protections
Denial of service based on sole discretion and ability of lessee to properly
operate equipment
Hold harmless and indemnification clauses
Waiver of liability
Miscellaneous
Cleaning fee: None
Security Deposit: $50
Acreage Metering: Yes
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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Scott County Soil & Water Conservation District continued
This program does not incorporate the resale of older agricultural equipment to farmers, but that
option had been previously explored by the District. They found that even using appraised trade-in
values for the used equipment were not enough to entice local farmers to buy. Farmers have found
cheaper deals on equipment being sold in the resale marketplace so the District has elected to trade
in older equipment with the dealer in order to maximize the amount of funding that can be used to
purchase new equipment.
Because the District enjoys robust support from local watershed management organizations (WMOs),
it is consistently able to secure grant funding that pays for staffing and labor. As a result, the District
does not need to account for those costs in its rental rates, which are therefore more competitive
than neighboring districts can offer. The District watched as others increased their rates to $10 or $12
per acre but decided to continue to keep their rental rates low at $8 per acre, which has resulted in
steady demand. In order to realize the greatest impact on soil and water quality possible, the WMOs
have agreed to use tax dollars to fund conservation farming projects across watersheds—not just in
Scott County. This partnership with the WMOs has been integral to the program's success.
Scott County SWCD manages most of its marketing and outreach through branding and face-to-face
interactions with local farmers. Seeing the logo on the equipment and hearing positive experiences by
those who have used the program through word of mouth have proven effective for the District. Many
farmers may not be familiar with what soil and water conservation districts do, so these conversations
provide opportunities to discuss the merits of conservation farming practices.
Scott County SWCD shared some important lessons learned and best practices for others seeking
to establish similar programs, stressing three critical elements: transparency, communication, and
education. Before standing up a new program, it is important to have a good idea of the level of
interest and demand that exists and whether it's enough to support the up-front capital expense of
-------
procuring the equipment and staff to perform operations. Another important question is whether the
expected costs are going to be agreeable to the users: if the rental rate is higher than expected, it can
potentially sink a fledgling program. Furthermore, do farmers have the time? Are they willing to host
equipment belonging to a third party on their land, factoring in any potential damage it could cause?
There may be impacts to time, operations, and management associated with putting in cover crops
such as seeding, spraying, and termination. Finally, there may also be some collateral damage to
cash crops crushed during the seeding process when using a high-boy interseeder, which equates to
lost revenue which farmers are, understandably, sensitive to. Providing education to landowners is a
critical part of the program. According to the SWCD, knowing what the farmers want and are willing to
pay for, along with transparency and open communication with those who are interested is necessary
to lay strong foundations for a new program.
Three Key Selling Points for
Local Farmers
I. Decrease in erosive conditions:
Farmers' biggest concern is the quality of
their topsoil and its nutrient and organic
content. Speaking to how practices like no-
till drilling and use of cover crops protect
the integrity of topsoil has a significant
impact.
2. Reduction in operational time: For farmers, time is money and when they learn how
these conservation practices can slash the amount of time required to perform these opera
tions, gaining interest is easy.
3. Reduction in fuel costs: Interseeders
reduce the number of passes over the farm
field, saving time, fuel and money.
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Minnesota Agricultural Best Management
Practices Program
Minnesota's AgBMP program is an example of a pass-through program that can provide a
roadmap for KDHE as it considers how it may establish and grow the AgBMP program. The
state's CWSRF covers the cost of its AgBMP program through a partnership with the Minnesota
Department of Agriculture (MDA). The CWSRF allocates funding to each county through county-
specific AgBMP accounts held at MDA; this ensures that funds are distributed equitably across
the state. Counties provide overall oversight and management of their accounts, and are
responsible for priority-setting, outreach, and project approval. Typical administrators are county
environmental offices, zoning and planning departments, and Conservation Districts.
As projects are approved, MDA transfers county funds to the local lender as costs are incurred.
The local lender may be a municipal/county government or a private financial institution.
However, in practice, only private financial institutions have offered financing thusfar for farm
practices such as interseeding and conservation tillage equipment. When loans are repaid, the
funds are returned to the county via the county-specific account held at MDA. This creates a
revolving fund program for individual counties (Figure 6). Counties with high demand can request
additional funding, and counties with low demand may see funds rescinded. Minnesota provides
the funds interest-free to lenders, although the lender may charge up to 3% interest. Maintaining
the county-specific accounts at MDA helps ensure that all funds are used for eligible purposes,
and virtually eliminates the administrative and accounting burden for local governments.
Since the inception of the AgBMP program in 1995, Minnesota has funded 3,972 conservation
tillage projects—37% of funds awarded. The counties establish their own priorities for project
and practices that they would like to fund (within the SRF eligibilities), and lenders establish the
underwriting criteria.
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MDA conducts annual oversight of the AgBMP program. Each year, the local lenders must
reconcile their account balances with MDA. Counties provide annual reports to verify the county-
specific account balance, confirm lender reported loan activity, propose next year's work plan,
and estimate anticipated unmet needs. The program's participating lenders guarantee full
repayment of the loans that they issue back to the AgBMP Loan Program. MDA staff has a goal of
interacting with each county and lender at least once a year, whether in person or via webinar,
to provide training and updates. They also have a regular newsletter (issued every 4 to 6 weeks)
to convey timely information, which is sent to approximately 500 people across the state. MDA's
goal is to conduct as much of the administration of the program as possible at the state level
and encourage local governments to devote their time and effort to identifying and helping
landowners solve their pollution problems.
To improve participation, Minnesota has simplified its reporting as much as possible. The loan
agreement asks for the number of acres that the equipment will be used on and the primary
crops. MDA uses NRCS formulas to determine the environmental benefits. For reporting to
the CWSRF Benefits Reporting system, only aggregate totals for the counties are entered, not
individual projects.
Flow of Funds from State to Lender
Funds are allocated to
Ag BMP accounts for
each county
Qj Funds from county
accounts are transferred
to local lenders as proj-
ects are approved
©Local lenders provide
loans for county-
approved agriculture
pollution prevention
projects
^ As projects are
The program is capitalized by:
• Federal Funds
• State Appropriations
• State CWSRF Funds
completed, funds
are repaid from the
local level back to
the county-specific
account
Figure 6. Flow of Funds in Minnesota's Ag BMP Program
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Washington
Spokane Conservation District's No-Till
Custom Seeding Program (Spokane, Washington)
Lesser known than its more famous big brother, the Direct Seed Loan Program, the
Spokane Conservation District (SCD) in Washington also has a program for no-till
equipment leasing. This program was launched in 2013 to help growers consider
no-till as a conservation practice without the significant up-front capital costs of
purchasing this expensive equipment. An economic study from 2009 identified
that the costs of accessing this machinery are often prohibitive for small farming
operations and are the largest barrier to wider adoption of conservation farming
practices.5 Custom seed and drill rental are sometimes the only feasible option
for small farmers. This conclusion paved the way for the District's formation of the
equipment leasing program. Under the lease, SCD provides an operator for the
equipment, but is also staffed to provide training to farmers on how to operate,
run, and maintain the drill themselves.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Key Features of the
Spokane Conservation
District Program
o
0
©
o
Equipment
30-foot Cross Slot No-Till Drill with one-pass take-out
Rental Rate
$25/acre plus the cost of fuel
Lease Agreement / Legal Protections
Liability insurance required
Hold harmless clause
Rights of Lessor to enter Lessee's property for inspection of equipment
Miscellaneous
Cleaning fee: $50
Security Deposit: $150
Acreage Metering: No
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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Spokane Conservation District continued
The Spokane Conservation District received CWSRF financing through the
Department of Ecology to help capitalize its Direct Seed Loan (DSL) Program
using a pass-through lending mechanism. The loan agreement is between the
Washington Department of Ecology and SCD. SCD then uses these funds to make
separate, individual loans to farmers in the district for the purchase of direct-
seeding equipment. The process is outlined in detail in Appendix C. From the
perspective of the farmer, the Direct Seed Loan program documents include the
following:
DSL Loan Application
DSL Loan Agreement
Agricultural Security Agreement between SCD and the farmer
Promissory Note
The Washington Department of Ecology also requires that recipients of the Direct
Seed Equipment Purchase program sign a 10-year maintenance agreement, even
if all the funding is provided as a grant. Ecology also stipulates that grant recipients
may charge a fee for the use of the drill and to cover maintenance and storage, but
not earn a profit. This can provide insight to other CWSRF programs on how they
may ensure proper maintenance for equipment receiving principal forgiveness
loans.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
CC Access to machinery
was the largest barrier
to wider adoption of
conservation farming
practices with costs often
not practical for small
farming operations.
Clean Water State Revolving Fund
Cover Cover Crop Interseecling for Clean Water in Northeast Kansas
March 2020
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Leveraging State Mandates for
Nutrient Reduction to Help Increase
Program Interest and Demand
Many states have passed legislation that specifically targets the reduction of nutrients in surface waters,
and agricultural practices feature prominently in the resulting strategic plans. All of the states represented
in this report are either operating under legislative mandates or other state-sponsored initiatives to
reduce nutrient loading of surface waters, from the Kansas Surface Water Nutrient Reduction Plan to the
Minnesota Nutrient Reduction Strategy. When nutrient reduction is part of a regulatory mandate, it can
play an essential role as a driver in the success of agricultural BMP programs. These are broad efforts that
encompass many state agency and local watershed partners that can reach a multitude of stakeholders to
promote conservation farming practices like cover crop interseeding.
As several state agricultural leasing programs have expressed, building robust interest and demand at the
outset of setting up a new leasing program is vital to its success. There may be opportunities to capitalize
on the partnership structures that have already been put in place through nutrient reduction strategic
plans and further build upon these strong foundations. For example, the Minnesota Metropolitan Council
requires soil and water conservation districts within its 7-county region to increase cooperative efforts by
forming a joint powers agreement structured around each 8-digit hydrologic unit code (HUC). This has
allowed the districts to tackle nutrient-related water quality issues across watersheds and maximize the
environmental benefits associated with agricultural BMPs. Scott County SWCD uses this mechanism to
rent cover crop interseeder equipment across county lines to improve upstream water quality that
directly impacts downstream farmers.6
$
Clean Water
Clean Water State Revolving Fund
Cover Crop Interseeding for Clean Water in Northeast Kansas
March 2020
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Some programs explicitly stated that effective outreach to their farmers and producers rely on messaging
related to the economic and cost benefits associated with conservation farming. When framing marketing
materials, workshop content, or preparing for face-to-face dialogues, some state strategic plans provide
useful material to help navigate these expectations more effectively. Cost-share programs have been
highlighted by Minnesota as one of the most effective voluntary agricultural BMP options available, but
they also explore additional options that can be folded into programs like crop yield insurance programs7.
These programs are created to help increase adoption of conservation farming practices by reducing the
risk associated with doing so.
Lastly, many of the leasing programs researched in this report did not incorporate any official mechanism
for measuring environmental benefits of adopting cover-crop interseeding practices. This is mainly
because farmers do not want to undertake any additional burden associated with reporting, but also
because District staff may lack the necessary experience for measuring such benefits. State nutrient
reduction strategic plans often include helpful tips on how to approach quantification of benefits. From
a state level, this is typically measured by demand as well as criteria established by USDA's Natural
Resources Conservation Service under its Environmental Quality Incentives Program. Working with
watershed partners on demonstration projects for the purpose of measuring reduction values of nitrogen
and phosphorus as well as tracking trendlines in farm production yields also serve
as good indicators of program success.
Clean Water State Revolving Fund
Cap Inteffieec for Clean Waterrn 'NSttfieast Kansas
® £S: 2021
$
Clean Water
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Best Practices for Program
Implementation and Oversight
State Ag BMP programs provide several models for conducting program oversight
to ensure that the equipment purchase programs are being implemented for the intended
purposes. What follows are a set of best practices for the management and oversight of a
CWSRF-funded agricultural equipment rental program.
Fee Setting to Cover Maintenance and Replacement
The Intention of the Kansas pilot project Is that Glacial Hills RC&D will charge a fee for the
use of the fnterseederthatw.il enable ft to maintain and replace the equipment over time.
Just as traditional CWSRF borrowers must show that they are charging sustainable user
rates (regardless of whether their loans have principal forgiveness), the Interseeder renta
program should demonstrate that fcwil seta sustainable rate.
As the previous examples show, other rental programs use a range of fees. One overriding factor Is that the
Implementing organizations are seeking to promote the use of cover crops, not earn a profit, and are therefore
seeking to minimize the rental rate for the equipment:,. In addition, knowing what farmers are willing to pay was
Cited as a key elementto consider. Washington Department of Ecology's program requirements specifically state
that earning a profit Is prohibited, and that rental rates be based on maintenance and storage costs.8 The Rice
SWCD established Its rate by calculating its costs and spreading it out over the number of acres they anticipated
charging for, aiming to recover the costs over seven years.
Reversion of Assets
Stipulations In financing agreements can help protect the program in the event of insol-
vency or inability to implement the project long-term. The contract between the munfcfpa
loan recipient and Glacial Hills RC&D maysti'pulatethatlf Glacial Hills RC&D IS unableto
continue implementation of the project (e.g., due to insolvency), the equipment Is reverted
to the mun icipality so that it may choose whether to continue the program.
Clean Water State Revolving Fund
¦¦ I
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Factors to Include in Rate-Setting
Factors include depreciation, fuel, repairs, and other machinery costs. Labor may be
included if It is not funded through another mechanism; for example, Scott SWCD uses
grant funding to coyer labor costs and therefore does not include ft in rental fees. Cap-
turing depreciation in the fee-settlflg process helps ensure that revenues can be used to
purchase new equipment over time. Having a reasonable estimate for expected acreage will be
an important component of fee setting. Rice SWCD indicated that |?did not reach; its acreage target in the first
year, while the Scott SWCD noted that weather patterns significantly impacted demand. Another factor is the sale
of the used equipment. The Scott SWCD found that farmers have been unwi lling to purchase its old equipment at
the fair market value, so they have always traded in their used equipment to the dealer.
Maintenance Agreement
The Washington Department of Ecology offers loans and grants for direct seed actWiies,
including equipment purchases. Under the Direct Seed Equipment Purchase program,
public entities may receive grants for direct seed drills and to provide education and out-
reach promoting the benefits of direct seeding programs. While the recipients of financing
are receiving grant funding, they are required to sign 10-year maintenance agreements. A
maintenance agreement may be included in the financing agreement with Glacial Hills RC&Dto ensure that the
interseeder is being properly maintained to maximize its effectiveness.
Use-Restricted Revenue Accounts
Use-restricted operating revenue accounts can be a best practice to ensure that CWSRF
funds are only used for approved uses, and that revenues earned from the rental pro-
gram are recycled for new equipment purchases. Such an account may be held aiihe
municipal level. This requirement could be incorporated as part of the CWSRF loan terms
and conditions along with proof of account establishment and a copy of the equipment sale
agreement template that includes instruction for transfer of funds and equipment title.
Clean Water State Revolving Fund
1 ' S jS Wate ' ipiggE i
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Bring it All Together
A key objective of all the programs reviewed for this report is to utilize agricultural
equipment rental to promote conservation practices with the goal of widespread
adoption by the farming community. Potential cost savings and reduction in
erosion were cited as primary drivers of interest. The examples in this report
provide best practices that may be incorporated into a successful marketing and
outreach strategy. It is important to emphasize that the entities interviewed for
this report punctuated the need to have a clear gauge of interest and demand
when standing up a new cover crop equipment rental program. This includes being
transparent about potential costs and benefits, and knowledge of what farmers
are willing to pay. This level of information is key to ensuring a sustainable rental
program.
Clean Water State Revolving Fund
Cover Crop Iriterseeclirig for Clean Water in Northeast Kansas
March 2020
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
There is a need to
have a clear gauge of
interest and demand
when standing up a
new rental program.
Clean Water State Revolving Fund
Cover Cover Crop Interseecling for Clean Water in Northeast Kansas
March 2020
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Endnotes
1 Bryant, Lara. "Organic Matter Can Improve Your Soil's Water Holding Capacity." NRDC
website, accessed October 14, 2019, https://www.nrdc.org/experts/lara-brvant/organic-
matter-can-improve-your-soils-water-holding-capacity.
2 Mengel, Dave , PhD, Soil Fertility Specialist, Kansas State University. Kansas State
Agronomy e-Updates, Number 357, July 6, 2012, https://www.agronomv.k-state.edu/
documents/eupdates/eupdate070612.pdf.
3 Chou, Ben & Claire O'Connor & Lara Bryant. "Climate-Ready Soil: How Cover Crops Can
Make Farms More Resilient to Extreme Weather Risks." NRDC website, accessed October
14, 2019, https://www.nrdc.org/resources/climate-ready-soil-how-cover-crops-can-make-
farms-more-resilient-extreme-weather-risks.
4 Sussex Conservation District website, accessed July 22, 2019,
https://www.sussexconservation.org/services/agriculture/air-seeder.html.
5 Painter, K. PhD (2010). Direct Seed Mentoring Project: An Economic Comparison of Direct
Seed and Conventional Growers in the Washington/Idaho Palouse. University of Idaho,
Moscow, ID.
6 Personal correspondence with Scott Schneider, Resource Conservationist at Scott
County, Minnesota SWCD on August 7, 2019.
7 "The Minnesota Nutrient Reduction Strategy." Minnesota legislature webpage, accessed
August 1 2, 2019, https://www.leg.state.mn.us/docs/2014/other/140284.pdf.
8 "Funding Guidelines State Fiscal Year 2020 Water Quality Financial Assistance." State of
Washington Department of Ecology webpage, accessed July 18, 2019, https://fortress.
wa.gov/ecy/publications/documents/1810030.pdf.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Appendix A: Kansas
CWSRF Interseeder Program
Marketing & Outreach
Materials
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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RijnitfUfTg-ter<^rl'gu(taral B® Msnspireftf PtiSSfcss-ii'nitte EWS®1'
Improve Soil Health & Reduce Streambank Erosion
Ensuring future agricultural productivity through land
management practices that provide multiple benefits
Learn about practical Featured Speaker: Gail Fuller - Soil Health, Cover
cost-effective ways to: Crops, Livestock Management, Holistic Farming
^Improve soil health
Reduce runoff
^Control erosion
^Increase future profitability
^Better manage streambank
erosion problems
^Enhance wildlife habitats
^Manage forest and rangeland
resources
Date:
January 15, 2019
(Inclement weather date
January 17) Featured Speaker: Philip Balch - Reducing Streambank
Erosion, Stabilization Techniques, Riparian Buffers
Time:
8:15 am - 3:00 pm
(Lunch provided for
registrations received by
January 10tli)
Location:
Nemaha County
Community Building
1500 Community Drive-
Seneca. KS. 66538
Philip Balch is a Stream Specialist and
principal of Wildhorse Riverworks, Inc.
in Topeka. KS. For over 30 years, Phil has
been working on projects to reduce
streambank erosion and restore
degraded stream conditions through the
application of hydrologic and ecologically based principles. During his
careen he has worked on numerous projects involving small streams as
well as major river systems in Kansas and around the country.
Registration:
https://wraps.eventbrite.com
Gail Fuller has been experimenting with no-till
farming since the mid-1980's and has been 100%
no-till since 1995 on his farm near Emporia. KS.
Over the years, regenerating soil health has become
his focus using nature's principles, such as
biodiversity, to grow healthy soils and healthy food.
He uses annual cover crops, perennial cover crops,
and companion crops. His livestock operation is similarly diverse with
cattle, sheep, pigs, and chickens grazing the covers in an intensive
rotational or "mob" grazing fashion.
$
Clean Water
Clean Water State Revolving Fund
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Appendix B: Rice County
SWCD Marketing & Outreach
Materials
Clean Water State Revolving Fund
Cover Cover Crop nterseecling for Clean Water in Northeast Kansas
March 2020
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FARM FIELD DAY (
Cannon River Watershed Partnership
Cover Crop Interseeding Demonstration Event
MCKNIGHT
FOUNDATION
Rshers & Farmers
Partnership for the
Upper Mississippi
River Basin
Talk to local
farmers, SWCD
staff and crop
consultants about
seed mixes,
herbicides, costs
and benefits of
cover crops.
Seeding demos at 6 PM will
include:
• Interseeder with N
side-dress - Mark
Legvold
• Gandy Air Seeder -
Steve Pahs Rice SWCD
• Hagie High-boy
Interseeder - Andy
Linder
You will also learn more about:
>
Herbicide Management &
interseeding Cover Crops
>
Cover Crops on Prevented
Plant Acres - New Rules,
Herbicide Plans & Mixes
>
4R Nutrient Stewardship
>
Water Quality Certification
Join us on July 2nd to see three
different methods for interseeding cover
crops into corn.
Location:
Date:
Time:
Dave and Mark Legvold Farm
5103 315th Street W
Northfield, MN
July 2, 2019
5 PM - 7 PM
COMPEER
FJ N.A_N_C L.A L
COLLEGE
DEPARTMENT OF
NATURAL RESOURCES
MA MINNESOTA POLLUTION
CONTROL AGENCY
Please call Rice SWCD at 507-332-5408 or Cannon
River Watershed Partnership at 507-786-3913 if you
have any questions about this event.
A light snack and beverage will be provided.
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Rice SWCD
Cover Crop
Incentive Program
Sign up now for the 2019 crop season!
• Rate is $30 per acre for single species, and $35 per acre for multi-species
mixes (up to $105 per acre over three years).
• Must agree to a three-year installation. Does not have to be on the same
field.
• Eligibility: This program is intended for farmers who have previously not
used cover crops.
• Funds are limited, so act now!
Cover crops improve soil health, protect your farm from erosion,
store nutrients, and much more!
To apply for the incentive, stop in
or call us at 507-332-5408.
RICE
1810 30th St. NW,
Faribault, MN 55021
www.riceswcd.org
Like us on
facebook
COVERCROPS
jfM;
MSr fr V <'
'
''Sr f
Find everything
you wanted to
know about
COVER
CROPS!
on our website:
www.riceswcd.org
The Rice SWCD is an equal opportunity provider and employer.
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Rice County Soil Health Group Meeting
When: August 6,2019,5 pm to 7 pm
Where: Mike Peterson Farm, 8391 Hall Avenue, Northfield
(meet at the red garage at the driving range)
Join area cover crop farmers and staff from the Rice SWCD to talk about soil
health and gear up for fall cover crops. All producers interested in planting
covers yet this year are invited to attend. The Rice SWCD will have their new
interseeder on-site and will be trying it out on soybeans at around leaf drop
time. Mike Peterson has a corn field that was inter seeded on June 10th, and
we will take a stroll into it and see how the covers are doing. We will also
discuss what people are planning for aerial seeding covers, and what the
outlook for post-harvest seeding is looking like. But most importantly, this is
an opportunity to share experiences and learn from each other.
A small meal will be provided, so an RSVP is appreciated for a headcount.
Please RSVP to Rice SWCD at 507-332-5408. Feel free to also contact our office
if you are interested or have questions about trying cover crops this fall. We
hope to see you there!
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
Appendix C: Washington
Department of Ecology &
Spokane County Conservation
District Loan Process
1. Loan application is sent or downloaded off website and completed by the ag
producer.
a. Producer faxes or mails the application back to SCCD.
b. Application is reviewed by the direct seed loan (DSL) manager. Producer must meet
requirements of direct seed program: must be direct seeding or be transitioning to
direct seed systems.
2. The producer is contacted by the DSL program manager and additional information
is requested.
a. An invoice from the dealership or a bill of sale from the private seller is required
showing:
3. Make, model, and serial number of the equipment being purchased.
a. Price of the equipment plus any trade-in allowances or down payments made by
the producer.
b. A letter from the producer's primary financial lender.
c. Letter must indicate that the loan will not have a negative impact on the producer's
operation or cash flow.
4. If there is no primary lender, a set of financial statements are sent to the borrower
for completion. (Forms can include balance sheet, statement of profits and losses,
and/or tax returns).
a. The DSL manager and/or other financial officers at SCCD will complete an internal
review of the statements, looking for financial soundness and ability to repay the
loan.
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Innovative Funding for Agricultural Best Management Practices Using the CWSRF
b. If a letter is received from a primary lender and it shows no negative impact on the
borrower, the loan is approved and SCCD begins the process of writing the loan.
c. If a negative letter is received from the lender, the loan is denied.
5. If an issue arises, the borrower is notified and given the chance to address it. If a
positive solution is not arrived at, the loan is denied.
a. Once the approval process is complete, the borrower information is entered into
the DSL loan system and loan documents are drafted and printed.
6. Documents are mailed or a meeting is set to do a review and to sign the
documents.
a. Once the promissory note and the security agreement are signed, a request is
generated in the loan system for a check to be cut.
7. All checks are cut to the borrower and to the seller of the equipment if possible.
This requires endorsement of the check by the borrower and the check is sent on
to the seller for final payment.
a. It is important to note that SCCD finances 75% of the value of the equipment over a
term of 3 years, 5 years, or 7 years for larger loans, if desired by the borrower.
8. Current loan rates are 4.5% fixed interest for 3- and 5-year notes and 5.5% fixed
interest for 7-year notes.
9. A 0.5% interest rate discount will be applied to any producer that is Farmed Smart
Certified.
a. Payment is made to the borrower and a UCC lien filing is completed online with the
State of Washington.
b. All loans written as part of the SCCD Direct Seed Loan program are entered in
SCCD's accounting loan system module.
10. The loan system is used for loan tracking, payment history, and monthly payment
notices. All loans in the system receive payment due notices approximately 4 weeks
prior the payment being due.
11. All loans are monitored to ensure timely payments and to account for any late or
delinquent accounts.
a. Any loan amount over the $100,000 level requires the approval of the SCCD Board
Chairman or representative.
12. Any cumulative SCCD loan portfolio over $300,000 requires the approval of the
SCCD Board Chairman or representative.
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