In 2009, CTIC received federal funding to study the feasibility of a water quality credit trading program in the Wabash River basin. 

Water quality credit trading may prove to be a useful, innovative, market-based approach to bolstering farm income while improving water quality. This voluntary tool connects industrial and municipal facilities with agricultural producers to economically achieve water

quality improvements. 

This concept is beginning to take hold in areas across the country. How does it work?

Generally, farmers implement conservation practices and sell the amount of nutrients or sediment reduced. Facilities, like wastewater treatment plants, buy the reductions to help meet their regulatory requirements. Often, these facilities find that it is less expensive to pay producers to implement conservation practices than it is to expand the facility or install new treatment technologies. Through water quality trading, producers, regulated facilities and local water quality all benefit.

CTIC’s market feasibility analysis will determine if the necessary conditions exist in the Wabash River watershed to support the development and implementation of a viable, sustainable water quality trading program.

U.S. Environmental Protection Agency, Agri Drain, Duke Energy, Indiana Association of Soil and Water Conservation Districts, Indiana Farm Bureau, Indiana Soybean Alliance, and Purdue University Extension