Conservation Innovation Fund and AGgrow Tech Announce $1.4 Million Contract with Maryland Department of the Environment for Quantified Nutrient Reduction Initiative
April 17 2024 - 9:32AM
Business Wire
The outcomes-based contract is the first
executed under the Maryland Department of the Environment’s Clean
Water Commerce Account Program; Maryland farmers to expand
regenerative farming practices as part of a ten-year project to
reduce nutrient runoff to the Chesapeake Bay Watershed
Conservation Innovation Fund, a non-profit blended finance fund
focused on conservation and sustainability, and AGgrow Tech,
announced today a $1.4 million pay-for-performance contract from
the Maryland Department of the Environment to reduce nutrient
runoff to the Chesapeake Bay Watershed. On April 4, the Maryland
Board of Public Works unanimously approved the project as its first
under the novel Clean Water Commerce Account Program that uses a
pay-for-performance approach to drive reductions in nutrients that
impair water bodies. The initiative enables participating Maryland
farmers to expand regenerative farming practices that produce
conservation benefits alongside a high-quality bedding product for
Maryland’s poultry industry.
Conservation Innovation Fund and AGgrow Tech, a leader in
renewable and sustainable agriculture solutions, have partnered
with Luthy Farms of Cambridge, Maryland and Tribbett Farms of
Denton, Maryland, to incentivize production of alternative crops
across more than 320 acres of local farmland.
“Local farmers are stewards of private land, and their land has
great potential to provide a valuable public benefit,” said Ashley
Allen Jones, Founding Chair of Conservation Innovation Fund. “This
first-of-its kind contract embraces an efficient market-based
system to pay farmers for the nitrogen reductions derived from
growing perennial crops, while supporting supply chain
sustainability. It’s a major step forward for our climate smart
commodities agenda.”
The Conservation Innovation Fund and AGgrow Tech contract is
part of the Maryland Clean Water Commerce Act (CWCA) of 2021 that
allocates funding for efforts dedicated to nitrogen reduction. The
ten-year initiative projects to reduce 7,000 lbs. of nitrogen, 70
lbs. of phosphorus, and 80,000 lbs. of sediment runoff annually in
support of Maryland’s reduction requirement under the Chesapeake
Bay Total Maximum Daily Load (TMDL) reported to the Environmental
Protection Agency (EPA).
Additionally, the initiative estimates direct carbon
sequestration of 1 ton per acre annually from crop production, and
further dairy sector methane emissions from frequent turnover of
poultry bedding in regional production houses. Conservation
Innovation Fund will use the USDA’s COMET-Planner software to
calculate carbon reductions realized during the next ten years.
“We continue to look to the Maryland farming community for
solutions to improve the environment and water quality,” said
Suzanne Dorsey, Deputy Secretary of Maryland Department of the
Environment. “There are more than two million acres of opportunity
across Maryland’s 12,500 farms. This initiative with Conservation
Innovation Fund and AGgrow Tech leverages private resources and
market-based approaches to achieve maximum conservation benefits
from public resources.”
Under the initiative, AGgrow Tech, Luthy Farms, and Tribbett
Farms will harvest over 2,500 acres of FREEDOM® Giant Miscanthus, a
perennial plant that thrives on marginal cropland, is tolerant of
drought and excessive rain, and offers the ability to store
nutrients in the root system and return organic material to the
soil. The cultivation of FREEDOM® supports crop diversification and
generates recurring income for farmers. It is a certified cultivar
developed and patented by Mississippi State University, with AGgrow
Tech holding the Global exclusive license.
“This initiative enables farmers to continue to increase crop
diversity and income opportunities across their farms while also
improving the environment,” said Travis Hendrick, CEO of AGgrow
Tech. “We’re thrilled to partner with Conservation Innovation Fund
to bring this market-based conservation approach to the Maryland
farming community.”
Since we began working with FREEDOM®, our farm has converted a
significant amount of marginal farmland to perennial grass,” said
John Luthy, Luthy Farms. “It also allows our farm to eliminate high
input costs while supporting the Chesapeake Bay Watershed.” “We’re
excited about our partnership,” added Dave Tribbett, Tribbett
Farms. “We grow FREEDOM® in areas where corn and soybeans won’t
grow and produce a crop that provides our farm with cost-effective,
high-quality poultry bedding.”
Conservation Innovation Fund
Conservation Innovation Fund creates water, carbon, and
biodiversity assets that align public and corporate sustainability
agendas with regenerative agriculture producers and practices. With
the support of public and philanthropic grant makers and
mission-oriented investors, Conservation Innovation Fund has
created a blended capital pool to expand market-based solutions to
address pressing conservation challenges.
AGgrow Tech LLC
AGgrow Tech is a leader in renewable and sustainable agriculture
solutions; and is committed to connecting fields of biomass to
various markets. Headquartered in High Point, N.C., with production
across the USA, AGgrow Tech’s proprietary technologies and novel
business model enable farmers, landowners, and customers to realize
the value of renewable biomass crops.
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Madelyn Ransom press@conservationinnovationfund.org