Performance–based Incentives for Conservation in Agriculture (PICA)

In partnership with:Sustainable ConservationPreservation Inc.UC Cooperative ExtensionRCD Monterey CountyNRCSParticipating growers and shippers

Lisa Lurie, RCDSCC

Presentation to the CARCD Conference November 14, 2014

The PICA 2013-2015 project is funded through the CDFA Specialty Crop Block Grant program with partner match and in-kind contributions.

PICA in a nutshell

Water QuantityReduce water pumped from

aquifer

Objective Indicator(s) Target(s) Measurement Incentives

Water QualityReduce nitrate leaching & nitrate in storm runoff

PICA is a voluntary program assisting growers in tracking water use and nitrogen movement on their farms to demonstrate and incentivize environmental performance

PICA metrics

• Water Use Efficiency RatioTotal water applied (irrig+rainfall) / crop specific evapotranspiration (ETc)

• Nitrogen Use Efficiency Ratio (as indirect measure of nitrate leaching)[N fertilizer applied + change in soil mineral N+ N water*ETc]/[N in plant biomass (fruit and vegetation)]

• Nitrogen and sediment loss in storm runoff Nitrate Concentration and Total Suspended Solids in

runoff leaving the farm

Background and Context

Benefits of performance-based metrics

• Provide measures to optimize water and fertilizer application and reduce costs, manage risk

• Provide documentation to meet buyer sustainability reporting requirements

• Provide documentation to meet regulatory requirements.

• Useful in combination with practice-based incentives to document conservation benefits of investment

•Preliminary framework for metrics and incentives developed and partially piloted in 2012-2013 •Metrics and monitoring methodology revised

and piloted on 10 strawberry farms for growing season 2013-2014 in the Pajaro Valley and Elkhorn Slough watersheds•Work with private industry and public agencies

to explore potential incentives for the program•Starting 2014-2015 pilot with 13 new ranches

PICA Accomplishments to date

2013-2014 Pilot Growers

• 10 Strawberry Ranches• 6 Companies• 200 + acres• How do these growers make irrigation decisions?• Feel method• Flow meter• DU evaluations• Soil moisture monitoring

• How do these growers make fertilizer decisions?• Soil lab analysis• leaf petiole analysis• PCA recommendations

• Spectrum of sophistication of methods for record keeping

Metrics are only as useful as the quality of recordkeeping

Annual Sampling Schedule (Pilot)

Pre-Plant (late summer / fall)• Confirm water meter function, take initial reading • Determine monitoring locations for surface runoff• Determine monitoring locations for soil NO₃-N (lbs/acre), collect first sample• Document fertilizer pre-plant application (lbs/acre) Throughout growing season• Record readings from water meter (either main or block level) (AF)• Measure and report NO₃-N during 2-3 runoff events (ppm) • Measure and report soil NO₃-N (lbs/acre) (once or twice)• Document fertilizer applications (lbs/acre) • Measure irrigation water N concentrationPost-Harvest • Measure and report soil NO₃-N (lbs/acre) • Take final water meter reading• Measure N in plant biomass (fruit and vegetation)

Monitoring Performance

Monitoring Performance

Incentive Structure Options

Type of Incentive:

On Farm Practice Incentives

Private Performance Incentives

PublicPerformance Incentives

Purpose:Public and private support to accelerate adoption of

new management practices

Reward achievement of outcomes that provide short-term financial advantage or long-term business viability

Reward achievement of farm level outcomes that collectively will provide

public good

Examples:Cost-share on practices

Education and Training

Technical support

Grower: cost savings from reducing inputs

Buyer: sustainability reporting• Contract preference• pricing for crop quality

LenderLand-owner

Water District: • Pricing/rebates

Regulatory Agencies: • Alternative reporting

Practice incentives

Practice implementation Farm-level Objectives Ambient-level Objectives

Performance incentives

What incentives do participating growers most value?

• Data to inform management• Knowing where you stand

relative to peers• Regulatory relief• Cost offsets• Crop Pricing (linked to yield,

quality, shelf life)

Next Phases1. Develop a fully functional self-assessment program for berries in

the Pajaro Valley

• Adjust monitoring methodology, implement on more ranches

• Pilot incentives with private industry and public agencies

2. Adapt the PICA model to pilot with other crops and transfer to other geographic locations

3. Develop business framework to sustainably manage PICA (including technical assistance, data management, performance reporting)

4. Integrate the PICA model of farm-level performance assessment with industry sustainability tracking and other regional initiatives looking at ambient level metrics, performance and incentives.

5. Explore performance metrics for soil health and climate change resiliency

Questions?

Lisa Lurie – llurie@rcdsantacruz.org 831-464-2950 x 27

The PICA 2013-2015 project is made possible through funding provided by the CDFA Specialty Crop Block Grant program and partner match and in-kind contributions from Sustainable Conservation, Preservation Inc., RCD of Monterey County, NRCS, Driscoll’s Berries, and participating growers. Thank you to all our supporters and partners!