Native Grassland Conversion: the Roles of Risk Intervention and Switching Costs

We develop a real option model of the irreversible native grassland conversion decision. Upon plowing, native grassland can be followed by either a permanent cropping system or a system in which land is put under cropping (respectively, grazing) whenever crop prices are high (respectively, low). Switching costs are incurred upon alternating between cropping and grazing. The effects of risk intervention in the form of crop insurance subsidies are studied, as are the effects of cropping innovations that reduce switching costs. We calibrate the model by using cropping return data for South Central North Dakota from 1989 to 2012. Simulations show that a risk intervention that offsets 20% of a cropping return shortfall increases the sod-busting cost threshold, below which native sod will be busted, by 41% (or $43.7/acre). Omitting cropping return risk across time underestimates this sod-busting cost threshold by 23% (or $24.35/acre), and hence underestimates the native sod conversion caused by crop production.

07039-014 Miners Creek Final Report

This project brings together rural and urban partners to address the impairment of Miners Creek, a cold water trout stream in Northeast Iowa. It eliminates point source pollution contributions from the City of Guttenberg, decreases non-point source pollution and increases in-stream and near stream habitat in the Miners Creek Watershed. It specifically eliminates sewage and storm water runoff from the City of Guttenberg into Miners Creek; it develops, enhances and preserves wetlands; reduces direct livestock access to the. stream through rotational grazing systems; completes stream bank stabilizatio11 and in-stream habitat creation; targets upland land treatment; and promotes targeted application of continuous CRP and forestry practices. This project recognizes that non-point source pollution improvements could be hampered by point source pollutants ihat inhibit biologic reproduction and survival. It takes appropliate measures to improve all aspects of the stream ecosystem.

1102-001 Twelve Mile Lake Final Report

Twelve-Mile Lake is an 800-acre man-made lake in central Union County. The watershed has 13,964 land acres that are used by farmers for row crops and pasture. This lake is used as a water supply source for the City of Creston and the Southern Iowa Rural Water Association. In total approximately 40,000 people are affected by this project. Developed over 20 years ago, the lake and fishery was renovated and restocked and much of the shoreline was riprapped about six years ago. During its history, extensive watershed efforts have been ongoing. However, as farmland for cropland has become more valuable and demand has increased, hilly land once used for dairy farming, grazing, and CRP has been put into row crop production. Consequently, sediment loss has become an increasing issue for farmers, conservation professionals, and the Creston Waterworks Department, which owns the water treatment facility at the lake. In 2011, the Creston Water Board received a WIRB grant to implement a sedimentation structure at the north end of the main channel flowing into the lake. The WIRB funds were used for land acquisition, with the IDNR actually constructing the facility. This report depicts work performed as part of the WIRB project.

09032-017 Miller Creek Watershed Final Report

Miller Creek is on the 2006 Section 303d Impaired Waters List and has a 19,926 acre watershed. All indicators, as reported in the Miller Creek assessment, show that the impairment is due to sediment and nutrient delivery from upland runoff which contributes to elevated water temperatures, excessive algae, and low dissolved oxygen levels within the stream. In an effort to control these problems, the Miller Creek Water Quality Project will target areas of 5 tons per acre or greater soil loss or with 0.5 tons per acre or greater sediment delivery rates. The assessment revealed these targeted priority lands make up 32% or 6,395 acres of the Miller Creek watershed. Priority lands include cropland, pasture land, timber, and sensitive riparian areas. It is the goal of this project to reduce sediment delivery by 70% on 60% or 3,837 acres of these priority lands. This will be accomplished through installation of strategically placed structural practices, rotational grazing systems, and buffer strips. These practices will reduce soil loss, reduce sediment delivery, improve water quality, and improve wildlife habitat in the watershed. Utilizing partnerships with NRCS and IDALS-DSC will be important in making this project successful. In addition to using matching funds from EQIP, WHIP, and CRP, the Monroe SWCD is committed to prioritizing local cost share funds through IFIP and REAP for use in the Miller Creek Watershed.

1233-015IJ Miller Creek Watershed Final Report

Miller Creek, a 19,926 acre watershed, is listed on the 2008 Section 303d Impaired Waters List. All indicators, as reported in the Miller Creek assessment, show that the impairment is due to nutrient and sediment delivery from upland runoff which contributes to elevated water temperatures, excessive algae, and low dissolved oxygen levels within the stream. The WIRB board provided implementation grant funds in 2010 for a three year project to treat targeted areas of 5 tons per acre or greater soil loss with an estimated reduction of 2,547 tons. As of December 1, 2012, with 95% of the funds allocated, the final results are estimated to provide a sediment delivery reduction of 4,500 tons and an estimated phosphorus reduction of 5,700 lbs per year. These accomplishments and the completion of the three year Miller Creek WIRB project represent "Phase I" of the SWCD's goals to treat the Miller Creek watershed. This application represents "Phase II" or the final phase of the Miller Creek water quality project. The Monroe SWCD plans to reduce sediment delivery by 70% on an additional 245 acres of priority land. This goal will be accomplished through installation of strategically placed structural practices, BMPs, and grazing systems. These practices will reduce soil loss, nutrient runoff, and sediment delivery as well as improve water quality and wildlife habitat in the watershed. Utilization of partnerships with NRCS and IDALS-DSC will continue to be an important part to the success of the project. Project goals will be achieved by utilizing matching funds from EQIP, and the Monroe SWCD has approved the use of District IFIP cost share funds specifically for use in the Miller Creek Watershed.

06034-016 Lake Colchester/Middle Creek Watershed Final Report

In-lake management can be a critical need for water quality improvement for impaired recreation lakes. Biomanipulation practices to achieve the proper balance of predatory fish, zooplankton grazing of algae, and native aquatic vegetation can sometimes restore water clarity of turbid, nutrient enriched lakes. Lakewood leaders have a renovation plan for Lake Colchester, involving several common and three innovative practices. Lakewood is prepared to pay for proven practices, but seeks WIRB grant support to test innovations in collaboration with Iowa DNR biologists, and ISU limnologists, serving as advisors and monitors for the entire project.