Credits/Functional Assessment
1. What is the difference between a commercial mitigation bank versus.an agriculture use mitigation bank?
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They can be similar, but the differences are often the extent of restoration, the cost of credits, and the types of wetlands in the bank. Commercial banks can include provisions for stream mitigation. Commercial bank credits are generally more expensive. For the NRCS program, the main difference is that credits can only be sold to producers for use in meeting their USDA conservation compliance requirements.
2. How will NRCS handle USDA producer eligibility issues that arise from a bank failure?
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Upon purchasing credits from a bank, the person’s eligibility for USDA assistance related to that wetland conversion is secured indefinitely. The Banking Instrument will contain financial assurances. The financial assurances will be used to correct or replace an unsuccessful or failed project. Additionally, all banked land must be protected by a conservation easement.
3. Who sets the cost for the credits?
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The wetland mitigation banker.
4. Is there a framework for how you will determine how many credits a producer has to buy based on their wetland impacts?
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The amount of credits a producer buys depends on the wetland functions, values and acres at the site they plan to convert. An NRCS approved functional assessment procedure will be used to evaluate the wetland that is intended to be impacted and the resulting number of credits needed to offset those impacts.
5. Can existing banks be amended to include agricultural credits or must it be stand alone?
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Yes, existing banks can be modified to meet the needs of this program.
6. Will pre-bank development credits be given and available for sale similar to the Corps?
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Yes, NRCS will work with Banks to develop a credit release schedule that could include advancing a portion of the credits.
7. What is the expectation for the life of a credit, once sold? Is a credit once sold expected to be cared for 1 year, 10 years, perpetuity?
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A wetland bank is protected by financial assurances and an easement, and the replacement functions and values will need to be maintained in perpetuity.
8. If a state does not have a functional assessment tool, can its development be part of the proposal?
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9. Would the agricultural mitigation credit need to remain within the same watershed?
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The mitigation credit would need to be sold within the Bank Service Area identified in the Mitigation Banking Instrument.
10. Can credits be purchased from a Minnesota bank to be used in North Dakota but in the same watershed?
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NRCS has not established policy on the use of mitigation credits across state lines. The agency is exploring how it may handle this situation.
Eligibility, Evaluation & Payment - Part 1 | Eligibility, Evaluation & Payment - Part 2 | Corps of Engineers/CWA | Credits/Functional Assessment | Other
Conservation Compliance Changes homepage | 2014 Farm Bill homepage
