Minnesota Study Reveals Financial Benefits of Water Quality-Certified Farms

A recent study conducted by the Minnesota State Agricultural Centers of Excellence highlights the financial advantages of implementing water quality practices on farms. The study, titled "Influence of Intensified Environmental Practices on Farm Profitability," focused on the state's Agricultural Water Quality Certification Program, demonstrating that participating farmers consistently achieved higher profits for the fourth consecutive year.

The study analyzed data from 101 farms enrolled in the water certification program, as well as numerous non-certified farms for comparison. Results showed that water quality-certified farms generated an average of $23,500, or 7.5%, more in income than non-certified farms in 2022.

While crop sales were slightly lower for certified farms compared to the state average, averaging $468,650 over four years versus the state average of $581,327, livestock sales more than doubled, reaching $572,556 over the same period.

Furthermore, the study found that farms involved in the Environmental Cohort achieved an average net income of $317,815 from 2019 to 2022, surpassing the state average of $257,647. These certified farms also had a slightly larger crop acreage, with an average of 831 acres in 2022, compared to the database average of 808 acres.

The study encompassed farms from various regions and types of agriculture across the state, offering a comprehensive understanding of the impact of water certification and environmental efforts. Stearns and Goodhue counties stood out with the highest number of certified farms, attributed to their substantial livestock presence and participation in Farm Business Management programs.

The study's findings underline the importance of water quality certification and provide valuable insights for farmers both within and beyond Minnesota. As the focus on environmental sustainability in agriculture intensifies, such research serves as a guide to support farmers in making informed decisions and driving positive change.

Photo Credit: Environmental Protection Agency