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WATERFOWL MANAGEMENT HANDBOOK

13.4.2. Economic and


Legal Incentives for
Waterfowl
Management on
Private Lands

Richard D. Schultz In recent years, public and private conserva-


U.S. Fish and Wildlife Service tion organizations have initiated programs de-
Federal Building, Fort Snelling signed to provide economic incentives for wildlife
Twin Cities, MN 55111 management on private lands. Other programs,
whose primary objectives are other than waterfowl
management, also improve and preserve waterfowl
Introduction habitat on private lands. These programs range
from tax incentives and wetland easements to di-
Waterfowl management on public lands in the rect financial assistance to landowners. In this
United States began about 1870 with the estab- chapter, legal and economic incentives for water-
lishment of Lake Merritt, a State-owned refuge fowl management on private lands are summarized
near Oakland, California. In 1924 the United under the following categories: Federal programs,
States established the Upper Mississippi River State and local programs, and private conservation
Wild Life and Fish Refuge, a complex of waterfowl organization programs.
habitats extending from Wabasha, Minnesota, to In most instances, government programs and
Rock Island, Illinois. Over the next 50 years, more those of private conservation organizations comple-
than 80 million acres of county, State, and Federal ment one another and often provide the private
lands were acquired across the United States to landowner many alternatives from which to choose.
provide waterfowl production, migration, and win- Likewise, governmental and private organizations
tering habitats. Because of these early (and con- have recently expressed a strong desire to form
tinuing) efforts, a significant portion of North partnerships to better manage waterfowl. This is
America’s remaining valuable wetland complexes one of the most important concepts in the North
exists on public lands. American Waterfowl Management Plan. No single
Despite the success of governments in acquir- entity has the capability to address the waterfowl
ing, restoring, and managing public lands for water- needs of the future through unrelated and inde-
fowl and other species, many wildlife populations pendent actions. Through combined efforts, how-
have declined to the lowest levels ever recorded. ever, we have a much better chance to achieve
This is due, in part, to the historic and ongoing con- waterfowl management objectives.
version of important wetlands and grasslands to The major purpose of this chapter is to discuss
croplands. Between 1950 and 1985 it is estimated an array of economic and legal incentives for water-
that more than 450,000 acres of wetlands were con- fowl management, although it is not a complete
verted each year; at least 87% of those conversions list. I am hopeful that the information contained
were for agricultural purposes. Today, 74% of the here will stimulate the reader to investigate spe-
remaining wetlands are on private lands and are cific programs that are available for waterfowl man-
vulnerable to destruction. agement on private lands at the local level.

Fish and Wildlife Leaflet 13.4.2. • 1990 1


Federal Programs Water Bank Program
Wetlands and adjacent uplands in some States,
One of the most significant pieces of legislation including some states in the prairie pothole region
affecting natural resource management on private and the lower Mississippi valley, are eligible for en-
lands was the Food Security Act (Farm Bill) of rollment in the Water Bank Program. This U.S. De-
1985. This legislation was unique in that it began partment of Agriculture program allows enrollment
to integrate natural resource management with of wetlands and associated uplands into 10-year
U.S. agricultural policy. Throughout the United contracts where the landowner receives annual pay-
States, waterfowl production, migration, and win- ments. Land parcels are reviewed for their wildlife
tering habitats are affected by the programs de- values; no more than 4 acres of upland for every
signed to implement this legislation. The following acre of wetland can be enrolled in the program.
is a discussion of these programs and other Federal Since its inception, the program has not been fully
programs that encourage waterfowl management funded; hence, only limited funding is available for
on private lands. enrollment of new lands. The Water Bank Program
is administered by ASCS with technical assistance
from the Soil Conservation Service.
Conservation Reserve Program (CRP)
One of the primary purposes of the CRP is to re-
Acres Conservation Reserve (ACR)
duce soil erosion by retiring highly erodible crop-
lands from production. These retired croplands Programs
provide excellent cover for upland-nesting water- Farmers participating in price support pro-
fowl and other wildlife. Beginning in January 1989, grams (commonly known as set-aside programs) of
CRP rules were modified to allow enrollment of cer- the U.S. Department of Agriculture have been re-
tain wetlands into the program. With this change, quired to set aside a certain percentage of their
private landowners were able to restore or enhance base acreage in most years. Conservation measures
wetlands on their property, improving waterfowl are required to provide soil erosion protection,
production and migration habitats. Wintering wa- water quality enhancement, wildlife production,
terfowl habitat on private lands was also improved and natural beauty. Millions of acres of cropland
through the restoration of bottomland hardwoods are retired each year as a result of this program.
on qualifying CRP lands in the lower Mississippi Multiyear set-aside contracts have been avail-
valley. able for program participants for program years
Under the CRP, the Agricultural Stabilization 1986−90. Under these multiyear contracts, land-
and Conservation Service (ASCS) had the author- owners may seed retired lands to permanent vege-
ity to share up to 50% of the cost of establishing tative cover. Where this option has been used,
conservation practices, including permanent vege- high-quality upland nesting cover for waterfowl
tative cover, tree planting, wetland restoration and and other species has been established. However,
enhancement, and other erosion control practices. multi-year set-aside is rarely used and relatively
In many areas, private conservation organizations few acres are established in permanent cover.
and State and Federal agencies will assume all or The next logical step in this program is to pro-
part of the landowner’s cost for the restoration of mote the enrollment of restorable wetlands into an-
wetlands on CRP lands. nual and multiyear set-aside contracts throughout
the United States. If this occurs, additional finan-
cial incentives for the landowner would likely be-
Agricultural Conservation Program (ACP) come available from other government agencies
Through the ACP, cost-sharing up to 75% is and private conservation organizations.
available for private landowners willing to under-
take conservation practices such as restoring Stewardship 2000: Partners for Wildlife on
drained wetlands or creating new ones. Unlike
Private Lands
CRP, however, annual land rental payments are
not paid to landowners under this program. The Recently, the U.S. Fish and Wildlife Service in-
ACP is administered by the ASCS. Technical assis- itiated Stewardship 2000, a program that will im-
tance for the ACP is provided by the Soil Conserva- prove wildlife habitat on private lands. This
tion Service. program is designed to complement, and not com-

2 Fish and Wildlife Leaflet 13.4.2. • 1990


pete with, similar programs administered by other The conservation easements must be enforceable
agencies and organizations. Stewardship 2000 will and perpetual, and they must be donated exclu-
concentrate on wetlands and their associated fish sively for conservation purposes to units of govern-
and wildlife values. The restoration of wetlands on ment or tax-exempt private entities. Additional
CRP lands has been expanded through this new information concerning tax incentives for water-
program to include wetland restoration on other fowl management on private lands can be obtained
private lands as well. Other improvements to wa- from a qualified tax preparer.
terfowl habitats have been completed through de-
ferred haying and grazing, creation of waterfowl
nesting structures, and in some instances, construc- State and Local Programs
tion of waterfowl nesting islands.
In the lower Mississippi valley, Stewardship Many programs that improve waterfowl man-
2000 has increased and improved waterfowl winter- agement on private lands are administered by
ing habitat. Under this program, the U.S. Fish and State and local governments. These programs in-
Wildlife Service enters into annual lease agree- clude short-term and perpetual land-retirement
ments with landowners for flooding of harvested programs, property tax incentives, and direct finan-
rice paddies and for the establishment of bottom- cial assistance to private landowners. Examples of
land hardwoods. Additional information about these programs are discussed below.
these private lands management programs can be
obtained from the nearest U.S. Fish and Wildlife Reinvest in Minnesota (RIM)
Service field office.
In 1986 the Minnesota State legislature passed
innovative legislation known as the Reinvest in
Small Wetlands Acquisition Program Minnesota Resources Act of 1986. The purpose of
this act is to retire marginal cropland from produc-
Under this program, administered by the U.S.
tion through the use of conservation easements. In
Fish and Wildlife Service, high-quality waterfowl
most instances, the program consists of perpetual
production habitat in the prairie pothole region is
easements, in which a lump-sum payment equal to
purchased outright or by perpetual easements. Ex-
70% of the average market value of the agricul-
isting and restorable wetlands are eligible for these
tural land is made to the landowner. Both restor-
programs. Under the easement program, the land-
able wetlands and highly erodible croplands are
owner retains all property rights except the right to
eligible for the program. Perennial vegetative cover
burn, drain, fill, or level-ditch the wetlands in ques-
must be established on the uplands to reduce soil
tion. Basically, the easement is designed to protect
erosion, improve water quality, and improve fish
the wetland in perpetuity. Landowners in the prai-
and wildlife habitat. The program is administered
rie pothole region who are interested in selling
by the Minnesota Board of Water and Soil Re-
their property in fee simple or in selling a water-
sources and the Minnesota Department of Natural
fowl production easement should contact the near-
Resources.
est U.S. Fish and Wildlife Service office.

Critical Habitat Matching Program


Federal Income Tax Incentives
As part of the RIM program, private land-
Expenses for many conservation practices un- owners and individuals may contribute cash, land,
dertaken by private landowners are tax-deductible. easements, or pledges for acquisition or develop-
Conservation practices designed to reduce soil ero- ment of wildlife habitat. All contributions are tax-
sion and improve water quality qualify, and ex- deductible and are matched, dollar for dollar, by
penses related to the restoration of wetlands for State-appropriated funds.
water quality and wildlife purposes are typically Donated land is appraised at market value. If
tax-deductible. Landowners who lease their prop- lands qualify, they are managed as a wildlife man-
erty to others for hunting or similar purposes may agement area, scientific and natural area, fisheries
qualify for investment-credit tax treatment for area, or other appropriate State unit. Donated
those conservation practices that benefit both rec- lands that do not qualify as critical habitat are
reational activities and wildlife. sold, and the proceeds are deposited into the Criti-
Gifts of conservation easements made to chari- cal Habitat Matching Account. Private landowners
table organizations may qualify for tax deductions. and others interested in participating in this pro-

Fish and Wildlife Leaflet 13.4.2. • 1990 3


gram should contact the Minnesota Department of ration of drained wetlands and enhancement of ex-
Natural Resources. isting wetlands are projects eligible for this pro-
gram, depending on flood control benefits. Private
State Private Lands Management landowners located in watersheds for which a need
exists to improve water quality or control flood wa-
Programs ters should contact their local Soil and Water Con-
Many State natural resource departments have servation District for additional information.
developed wildlife management programs for pri-
vate lands. State biologists are often available to
provide landowners with technical assistance in Private Conservation Organization
the development of their lands for waterfowl and
other wildlife species. These biologists frequently
Programs
serve as "brokers" and are also familiar with pro- In recent years, private conservation organiza-
grams of other agencies that may meet the objec- tions have been instrumental in promoting wildlife
tives of the individual landowner. In some habitat improvement projects on private lands. Sev-
instances, these State-administered programs pro- eral of these organizations are national or interna-
vide cost-sharing assistance to help finance wildlife tional in scope, while others are regional or local.
management projects. Collectively, these conservation organizations are a
great source of financial and technical assistance
State Tax Credit and Exemption Programs for the private landowner who wishes to improve
lands for waterfowl.
Several States have statutes that provide prop-
erty tax relief for those landowners who are inter-
ested in preserving habitat that can benefit Ducks Unlimited—U.S. Habitat Program
waterfowl and other wildlife resources. In the Mid- Since 1983 Ducks Unlimited has financed the
west, for example, Iowa, North Dakota, and Minne- improvement of waterfowl habitat in several States
sota exempt certain wetlands from taxation. of the upper Midwest. Most of these projects were
Additional information about these programs can on public lands. Recently, however, Ducks Unlim-
be obtained from county tax assessors. ited has expanded its program and assists in wet-
land restoration projects on private lands,
Indiana Classified Wildlife Habitat Act including those lands enrolled in the Conservation
Reserve Program. In cooperation with the U.S.
The purpose of this legislation, passed in 1979, Fish and Wildlife Service, Ducks Unlimited has as-
is to reduce habitat loss by encouraging land- sisted in restoring several hundred wetlands in
owners to develop or save existing wildlife habitat. North Dakota and western Minnesota.
The incentives for landowner participation are a re-
duction of the assessed value of classified lands to
$1 per acre for tax purposes, and free technical ad-
Ducks Unlimited Canada—Prairie Care
vice and assistance from the Indiana Division of Program
Fish and Wildlife. Lands eligible for this program Beginning in June 1989, farmers in selected ar-
include grasslands, shrublands, and wetlands. The eas of Canada’s prairie Provinces were offered in-
owner of the classified wildlife habitat does not re- centives and technical assistance to adopt
linquish ownership or control of the property. conservation land-management practices or to con-
vert marginal croplands to pastures or hayland. An-
Minnesota State Cost-share Program nual rental payments are also used to maintain
grass cover for several years. Additional informa-
The Minnesota Board of Water and Soil Re- tion about this program can be obtained from
sources offers cost-share assistance to local Soil Ducks Unlimited Canada, 1190 Waverly Street,
and Water Conservation Districts for construction Winnipeg, Manitoba R3T 2E2.
costs of water quality projects. Frequently, these
projects identify the need to restore wetlands and
retire highly erodible croplands on private lands. Pheasants Forever
Likewise, Watershed Management Districts, par- Activities undertaken by Pheasants Forever in-
ticularly in western Minnesota, have contributed clude the restoration of upland nesting and winter-
cost-share grants for flood control purposes. Resto- ing cover for pheasants. Many Pheasants Forever

4 Fish and Wildlife Leaflet 13.4.2. • 1990


projects also improve habitat for waterfowl; particu- Local Hunting, Fishing, and Conservation
larly where the organization finances the restora- Clubs
tion of wetlands that provide excellent winter cover
for pheasants in the upper Midwest. Local chapters Local hunting, fishing, and conservation organi-
zations are willing to assist private landowners
also purchase or lease lands containing valuable
with waterfowl habitat improvement projects.
habitats. Members of Pheasants Forever also work
Many of these organizations have substantial finan-
with private landowners, other private organiza-
cial resources that are often dedicated to wildlife
tions, and government agencies to improve wildlife habitat improvement projects on both public and
habitat. private lands.

The Nature Conservancy


Summary
The Nature Conservancy is an international or-
As indicated by the previous examples, a num-
ganization, organized in the United States by State
ber of incentives exist for private landowners
chapters; its purpose is to preserve rare and endan-
within certain areas to improve waterfowl manage-
gered plant and animal communities through land
ment on their lands. Additional programs exist in
purchases and the acquisition of conservation ease- Canada. Land managers and landowners inter-
ments. The Nature Conservancy also assists gov- ested in using these programs are encouraged to fa-
ernments and other conservation organizations miliarize themselves with programs in their area.
with land acquisitions, manages a worldwide sys- If no incentives exist for wildlife habitat protection
tem of nature preserves, and promotes legislation of private lands, those interested are urged to pro-
for the protection of ecological diversity. mote the implementation of such programs
through their local, State, and Federal govern-
ments. This participation is critical as we approach
Wetlands for Iowa the next century, where the future of waterfowl in
North America will depend on innovative programs
The Iowa Natural Heritage Foundation is a
to encourage resource conservation on private
nonprofit organization whose purpose is to restore lands.
and preserve important resources within the State
of Iowa. One such program is Wetlands for Iowa,
which is designed to preserve existing wetlands Suggested Reading
and restore others. These wetlands may exist on
private lands, and conservation easements can be Henderson, F. R. 1984. Guidelines for increasing wildlife
acquired for their continued protection. on farms and ranches. Kansas State University
Cooperative Extension Service, Manhattan. 572 pp.
Messmer, T. 1989. North Dakota wildlife conservation
State Waterfowl Associations programs. North Dakota State University Extension
Service, Fargo. Pub. WL-942 revised. 16 pp.
These organizations assist in the restoration of Steward, D., D. DeFrates, and K. Peper. 1988.
wetlands located on CRP or public lands. Water- Nonregulatory wetland protection options.
Minnesota Board of Water and Soil Resources, St.
fowl associations and private duck-hunting clubs
Paul. 17 pp.
also purchase high-quality waterfowl habitat in fee Ward, J. R., F. K. Benfield, and A. E. Kinsinger. 1989.
title or protect important habitat through acquisi- Reaping the revenue code. Natural Resources
tion of perpetual conservation easements. Defense Council, New York. 142 pp.

UNITED STATES DEPARTMENT OF THE INTERIOR


FISH AND WILDLIFE SERVICE

Fish and Wildlife Leaflet 13

Washington, D.C. • 1990

Fish and Wildlife Leaflet 13.4.2. • 1990 5

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