Water Quality Trading & Federal Farm Policy

Water Quality Trading & Federal Farm Policy

The National Network has identified “supportive policy” as an important aspect of successful water quality trading programs. In the Network’s first analysis of federal policy, individuals from the Network Steering Committee and guests brainstormed ideas for ways existing federal farm programs could better support water quality trading.

This summary is a gathering of initial ideas organized under the important factors shaping success in markets for water quality:

  • Clear demand: Clarity in water quality goals, authority to use market-based approaches, and willingness of buyers and the private sector to invest in water quality;
  • Clear risk: The policies and people clearly manage risk so that the private sector and buyers want to participate; and
  • Clear path: The tools, systems, and capacity needed to develop and support markets.

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