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 Hedrick, CEO of AGgrow Tech. “We’re thrilled to partner with the 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.

Historic investment in grants to support on-the-ground clean water, climate resilience and community engagement projects The National Fish and Wildlife Foundation (NFWF) today announced $35 million in grant awards to support the restoration and conservation of the Chesapeake Bay watershed. The 82 grants will leverage $32 million in matching contributions to generate a total conservation impact of $67 million, marking a record annual investment in NFWF’s nearly 25-year history of supporting Bay restoration. The grants were awarded through the Innovative Nutrient and Sediment Reduction Grant (INSR) and the Small Watershed Grants (SWG) programs, core grant programs of the federal-state Chesapeake Bay Program partnership that are administered under NFWF’s Chesapeake Bay Stewardship Fund (CBSF). CBSF is a partnership between NFWF, EPA, and other federal and private funders that provides grant funding, technical assistance, networking and information sharing in support of local, on-the-ground conservation and restoration efforts to restore the Chesapeake Bay and its tributary rivers and streams. “With 2024 marking 25 years of partnership between NFWF and the U.S. Environmental Protection Agency in advancing efforts to protect and restore the Chesapeake Bay watershed, we’re thrilled to celebrate this programmatic milestone with a record annual investment of $35 million in voluntary and community-based projects across the Bay watershed,” said Jeff Trandahl, executive director and CEO of NFWF. “These grants reflect our continuing commitment to protect the Chesapeake Bay and preserve our nation’s environmental legacy for future generations,” said EPA Mid-Atlantic Regional Administrator Adam Ortiz. “This historic investment by the Biden-Harris Administration enables EPA to continue to provide game-changing funding for our partners who are equally committed to preserving, protecting and enhancing the communities, people and businesses who rely on the Bay.” Through these awards, NFWF and EPA have prioritized investments that accelerate implementation of natural and nature-based watershed restoration practices that provide long-term water quality improvement benefits, increase aquatic and terrestrial habitat for at-risk species, and enhance climate resilience for human and wildlife communities. These projects will further emphasize partnerships and collaborative approaches as central to effective local and regional ecosystem restoration efforts and engagement of communities in the planning, design and implementation of those efforts. The funds will help partners engage farmers and agricultural producers, community-based organizations, homeowners, churches, businesses and municipalities to improve local water quality and the health of the Chesapeake Bay. Examples of this year’s grant recipients include: Arlington County, Virginia ($282,400) will install three green stormwater infrastructure practices to intercept more than four acres of upland stormwater runoff to improve Grandma’s Creek and conduct a variety of nature-based and watershed education activities in the community to generate awareness and watershed protection in the North Barcroft community. Colonial Soil and Water Conservation District ($999,500) will install approximately 5,200 linear feet of living shorelines on agricultural properties along the James River in Charles City County to improve shoreline stabilization, and prevent water quality degradation in the Chesapeake Bay and property loss. Western Pennsylvania Conservancy ($1,000,000) will accelerate restoration of riparian forest buffers, urban and community forestry programs, and community and local government engagement across central Pennsylvania—installing 75 acres of riparian forest buffers in the Juniata, Potomac and West Branch Susquehanna watersheds and advancing urban tree planting in and around Altoona and Hollidaysburg. Chesapeake Bay Foundation ($476,300) will deliver whole-farm conservation systems on farms in Maryland and West Virginia’s Upper Potomac River watershed to enhance water quality and resilient agriculture in the region. Lower Shore Land Trust ($1,000,000) will expand the capacity of the Delmarva Restoration and Conservation Network to accelerate restoration and conservation practices in the Chesapeake Bay watershed portion of the Delmarva Peninsula to implement 160 acres of wetland and buffer practices. A complete list of the 2024 Chesapeake Bay Innovative Nutrient and Sediment Reduction grants recipients is available here. Since 2006, the INSR Program has provided nearly $150 million to 346 projects that have reduced nearly 25 million pounds of nitrogen, four million pounds of phosphorus, and 500,000 tons of sediment across the Chesapeake Bay watershed. The SWG Program has provided nearly $130 million to more than 560 projects that have permanently protected 180,00 acres under conservation easement, restored more than 1,600 miles of riparian habitat and 14,000 acres of wetlands, and engaged more than 150,000 watershed residents in volunteer conservation and restoration efforts. For more information about the Chesapeake Bay Stewardship Fund or to download the 2024 Chesapeake Bay Innovative Nutrient and Sediment Reduction and Small Watershed Grants Slates, visit www.nfwf.org/chesapeake. About the National Fish and Wildlife FoundationChartered by Congress in 1984, the National Fish and Wildlife Foundation (NFWF) protects and restores the nation’s fish, wildlife, plants and habitats. Working with federal, corporate, foundation and individual partners, NFWF has funded more than 6,000 organizations and generated a total conservation impact of $8.1 billion. NFWF is an equal opportunity provider. Learn more at nfwf.org. About the U.S. Environmental Protection Agency GrantsEvery year, EPA awards more than $4 billion in funding for grants and other assistance agreements. From small non-profit organizations to large state governments, EPA works to help many visionary organizations achieve their environmental goals. With countless success stories over the years, EPA grants remain a chief tool to protect human health and the environment. About the Chesapeake Bay ProgramThe Chesapeake Bay Program is a regional partnership consisting of federal, state and local governments, academic institutions and non-governmental organizations. Primarily funded by the U.S. Environmental Protection Agency, the Chesapeake Bay Program has set the guidance and policy for restoring the Chesapeake Bay since 1983. Learn more at www.chesapeakebay.net.

The PCM program was created by farmers, for farmers, to assist in the evaluation of on-farm conservation decisions. The program began with a Regional Conservation Partnership Program (RCPP) award through the USDA in 2015. Since that time, the program has expanded from four Illinois regions to seven, one in Kentucky, and one in Nebraska. The objective of PCM is to work oneon-one with farmers to help them understand the costs and benefits of adopting new conservation practices. By joining PCM, farmers agree to allow PCM to aggregate and anonymize their data in a way that demonstrates how conservation practices affect both environmental outcomes and farm incomes. The advantage of PCM to individual farmers is that they have their own PCM specialist who helps them make decisions about adopting conservation practices in a financially responsible way. Download the report below for more information.

A broad range of companies within the food sector can use IRA-funded agricultural programs to support their climate goals, including food processors, beverage companies, grocery stores, wholesale clubs, agricultural producers, restaurants, packaged food companies, and meat producers. On average, two-thirds of food sector companies’ emissions are generated by farm-level production, making on-farm sustainability critical for abatement. Download the guide below to learn more.

On September 15, The Conservation Innovation Fund, Ecosystem Services Market Consortium, and the Maryland & Virginia Milk Producer’s Cooperative Association were awarded $25 million by the U.S. Department of Agriculture through the Partnerships for Climate-Smart Commodities funding pool. The Mid-Atlantic Conservation Innovation Fund Climate-Smart Commodities project builds on an existing partnership between CIF, ESMC, and MDVA to expand climate-smart commodity initiatives across targeted watersheds in the Mid-Atlantic. Dairy farmers will implement practices that deliver quantified carbon reductions and water quality improvements in line with verified, validated models that meet stringent sustainability reporting standards. Priority practices will include nutrient management, rotational grazing, cover crops, and no-till agriculture. Verified greenhouse gas reductions generated by participating farmers will be marketed for purchase by food and beverage sector corporations to achieve sustainability goals, including to meet net-zero goals, supply chain carbon removal, and carbon reduction reporting requirements. "We created the Conservation Innovation Fund as a blended, non-profit finance fund to catalyze risk-adjusted capital flows at the intersection of climate and capital," said Ashley Allen Jones, CEO of i2 Capital and founding board member of the CIF.  “USDA's vision for the Climate-Smart Commodities program moves the conservation finance field to new levels. We're grateful to partner with leaders across the finance, conservation, agriculture, policy and environmental markets sectors to further integrate sustainability into our commodities supply and distribution chains." “Our family-owned farms are a ready pipeline for farm-level implementation of climate-smart practices,” Lindsay Reames, Executive Vice President of Sustainability & External Relations said. “Our farms currently face a year-long wait list for conservation and nutrient management planning. Through USDA’s generous funding, we will immediately tackle the existing backlog of producer demand for climate-smart commodity practices.” “We are excited to continue working with these great partners to expand voluntary climate smart market opportunities to dairies in the Mid-Atlantic,” said Debbie Reed, ESMC Executive Director. “With this USDA funding, we can expand our market program accreditation for climate outcomes on US dairy operations and meet the demand from our corporate partners for Scope 3 supply chain solutions. This project focuses on local solutions that meet national and societal needs. Working with these partners we will generate credits for soil carbon removals, GHG reductions, and improved water quality to pay producers for their stewardship in the Mid-Atlantic.” Other partners in the Project include South Mountain Creamery, Stroud Water Research Center, Pennsylvania Soil Health Coalition, Virginia Department of Conservation & Recreation, PennVEST, TeamAg, RedBarn Consulting, Alliance for the Chesapeake Bay, Alliance for the Shenandoah Valley, Shenandoah Valley Conservation Collaborative, Lancaster Clean Water Partners, Virginia Tech Extension, and the Virginia Soil Health Coalition. USDA received over 400 applications for the climate-smart commodities program and 70 were selected for a total investment of $2.8 billion. The funding pool is intended to expand markets for America’s climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production, and provide direct, meaningful benefits to agriculture.

The Ecosystem Services Market Consortium (ESMC) and the Conservation Innovation Fund (CIF) are pleased to announce kick-off of a project to streamline the creation and sale of environmental credits from dairy and beef producers in the Mid-Atlantic. Through the project, farmers will implement practices such as edge-of-field conservation, increased nutrient management, manure management, cover crops, and reduced tillage. These practices will generate environmental credits from measurable water quality improvements, carbon reduction, and biodiversity enhancements. The project provides up-front capital to producers and agricultural technical assistance providers to collaboratively develop water, biodiversity, and carbon credits. Credit buyers in the food and beverage sector will have the opportunity to meet their Scope 3 supply chain carbon goals using agriculture as an environmental solution. Credits developed through the project will meet the quality requirements of global corporate supply chain accounting and reporting standards. “Market-based sustainability initiatives have the potential to fundamentally reshape how we integrate carbon sequestration, water quality, and biodiversity preservation into our agricultural supply chains,” said Ashley Allen Jones, CEO of i2 Capital and founding board member of the CIF. “We formed the Conservation Innovation Fund to systematically align resources and reduce adoption risk to agricultural producers, quantification and transaction experts, and corporate purchasers, thereby strengthening the emerging market for carbon and water smart commodities.” Additional lead project partners include Maryland & Virginia Milk Producers Cooperative Association (MDVA), TeamAg, RedBarn Consulting, Stroud Water Research Center, the Alliance for the Chesapeake Bay, Lancaster Clean Water Partners, the Alliance for the Shenandoah Valley, and members of the Virginia and Pennsylvania Soil Health Coalitions, alongside several food and beverage brands. “Our family farmer-owned cooperative of over 950 dairy farmers across the Mid-Atlantic embraces sustainability as a core operating principal,” said Lindsay Reames, Executive Vice President of Sustainability and External Relations for MDVA. “Our partnership with ESMC and CIF will support the delivery of carbon- and water-smart commodities to our many retail customers while strengthening farm operations and bolstering rural economies across our region.” ESMC is targeting up to 500,000 acres enrollment in 2022 with its market program launch. ESMC’s program stacks multiple ecosystem credits, including increased soil carbon, reduced greenhouse gases, water quality, water use conservation, and biodiversity, to make ESMC a unique and attractive option for farmers and for buyers and investors seeking high quality carbon and environmental credits. ESMC’s Executive Director Debbie Reed stated, “US farmers and ranchers are rising to the challenge to become more sustainable and meet the demands of corporations and consumers. Our joint programming will reward farmers for implementing sustainability practices that are quantified and verified in our digitized program that generates high quality credits. The up-front funding mechanism of this project provides Mid-Atlantic producers the capital to implement practices with less financial risk. This increases their ability to participate in ecosystem services markets that scale quantified improvements to water, carbon, and biodiversity.”