The Pacific Northwest is anticipating massive growth in the years ahead, most of which is likely to occur in areas of environmental sensitivity. Environmental markets (also referred to as ecosystem service markets) represent a way for our growing communities to offset or mitigate for the unavoidable impacts of growth and development at the lowest reasonable cost. At the same time, they can provide supplemental income for our farmers and ranchers, improving their economic viability, and providing the funding necessary for them to protect their land and remain in agriculture.

1. Environmental Markets for Washington Farmers & Ranchers Don Stuart -- American Farmland Trust Dennis Canty – Consultant to AFT

5. Diagram of an Environmental Market

9. Theory on Price Versus Participation

11. Why Washington Lags Sellers (Farmers, Mitigation Bankers, Conservation Groups) Buyers (Utilities, Developers, Brokers) Regulators (Federal, State, and Local Environmental Agencies)

16. Environment as a Liability Long eroding bank Boggy area Thin gravelly soils

17. Environment as a Marketable Asset New riparian zone Restored wetland Restored floodplain

18. A Potential Market Solution

20. Stacking Incentives and Markets CRP and carbon markets CREP and wetland markets WHIP and habitat markets

22. Theory on Price Versus Participation

25. Moving from a Scattershot Approach…

26. To a More Strategic Product

30. Questions, Comments, Suggestions . . . More information at: www.farmland.org/ environmentalmarkets

31. Diagram of an Environmental Market