A New Agriculture Product Presented by Norm Ward .
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Transcript of A New Agriculture Product Presented by Norm Ward .
Environmental Goods and Services
A New Agriculture ProductPresented by Norm Ward
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EGS are the benefits arising from the ecological functions of healthy ecosystems. Such benefits accrue to all living organisms including plants, animals, not just humans
EGS is a new emerging Agriculture product
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EGS
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Ecological Goods – clean air and clean water
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Ecological Services – water storage, carbon storage, maintenance of biodiversity
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Services may also include – view scape
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A decision making framework that manages for the whole, which includes land, people, and money
Unregulated Market Place at One End ,where EGS has no Value
Partial Market Place With Government as the Only Purchaser of EGS, and partial EGS value
Full Market Place with Many Private Purchasers of EGS
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Market Place Continuum
Air sheds, watersheds, groundwater, scenic lands, and ecologically important but sensitive ecosystems are widely considered ‘‘public goods.’’ That is, in an unregulated marketplace, people who pay to ‘‘consume’ ’environmental goods and services are unable to keep those who don’t pay from enjoying the benefits of that purchase.
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Unregulated Market Place
An example of Government treating endangered species as a public good in an unregulated market place.
Government dismissed the concept of either a market place or financial compensation to landowners that provided habitat for species at risk and instead used centralized planning with punitive regulation
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Federal Species at Risk Act
A market place may be created when EGS services are demanded by society and supplied by public and private landowners.
The Alberta Land Stewardship Act passed in 2009 facilitates the creation of market based instruments associated with EGS
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Partial Market Place
Incentives to maintain ecosystems
Ecological Gifts Program provides tax credits
Tradeable Development CreditsConservation OffsetsConservation DirectivesConservation Easements in a capped market place
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Examples
Grass finished beef
Paid access for hunting activities
Viewscape – residential clusters surrounded by natural landscape
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Full Market Place
As in any market place, legislation, regulation and common law provide a framework to operate in
Property rights associated with the new EGS agriculture product must be defined and protected
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Property Rights in the Market Place
Agriculture will produce products with the highest financial value
Traditionally these products are sold into a developed market place with common law that supports ownership of the product, and thus allows agriculture products to be bought and sold with confidence
Since the market place for EGS is still developing, high EGS land continues to produces traditional agriculture products with the absence of an EGS value
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Highest Value
The market place must be allowed to align the economic and ecological signals
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Market Place
A developed and undeveloped market place
High value traditional oilseed product with low EGS
Low value traditional meat product with high EGS
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Although canola land may have a lower EGS value it offers 2 or 3 times the return on investment over a natural landscape with a high EGS value
Canola is marketed into an established market place which does not include EGS
A natural landscape may produce meat products from grazing animals and increasingly will sell EGS associated with the traditional product
The difference between the two agriculture products is directly related to land prices
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Land Values
Continued differentiation of the meat protein market now includes products that are –either perceived or real – associated with EGS
Natural/ Organic Beef Grass Finished Beef Grass finished pork Grass finished poultry
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Will that be a burger with a side order of EGS?
Functional foods provide health benefits over and above basic human nutrition
Omega-3 enriched eggs, milk, yogurt and pork are now available
These enriched foods provide basic nutrition but also help protect the heart by potentially lowering blood cholesterol.
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Functional Foods Meet EGS
Omega 3 fatty acids are formed in chloroplasts of green leaves and algae
Grasses and in particular native grass, provide a source of omega 3 fatty acids in beef.
When cattle are fed omega 3 deficient grain, they begin losing the store beneficial fat
The Canadian government permits the claim-DHA, and Omega 3 fatty acid supports the normal development of brain, eyes and nerves
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Omega 3
Some research that indicates a ratio of omega 6 to omega 3 needed for a healthy human diet should be about 4 to 1
Common oils - canola 2:1 - soybean 7:1 - corn oil 46:1 Beef - grass fed 2:1 - grain fed 4:1 to 20:1
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Omega 6 to Omega 3 ratio
CFIA label claims of “contains omega 3 polyunsaturated fatty acids” must have 300 milligrams of omega 3 per 100 grams of food
Grass fed beef may be able to meet label requirements without supplementation
There is a need for a rapid omega 3 test for meat, so that meat and trim can be sorted for maximum omega 3 yield
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Market Place for Omega 3
FEB is functional ecological beef - reflects the functional aspect of omega
3 beef as a food - reflects the functional aspect of the
environment the animal was raised in FED is traditional grain finished beef
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FEB Beef and FED Beef
Functional ecological foods provide a positive outcome for the health of people and the environment
This is where people goals, land goals, and with a new market place for EGS, financial goals meet.
The market place is starting to align the economic and ecological signals
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Land People and Money
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Access Compensation for Hunting
Landowners who become outfitters and acquire tags are able to charge for guiding non resident hunters
Huge potential for landowners with outfitter and tag licences to band together to form a hunting access zone (similar to a hunting zone)
Wild game is a direct reflection of a healthy complex ecosystem producing extensive environmental goods and services
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Compensation for Access
As viewscape becomes more important municipal bylaws and provincial regional plans must be realigned to provide for clusters of residential housing with viewscape in between cluster.
This may be best handled using tradeable development credits in an open, and competitive market place
Viewscape has a market place value
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Residential Clusters- Viewscape
Modifying farming and grazing practices may yield more soil water storage
The current market place continuum for EGS puts water storage in an unregulated market and thus a public good
Soil water storage can be quantified and this may indirectly provide a measurement indicator for a new market place.
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Water Storage
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Water storage Intensive grazing vs. Continuous
At one end of the continuum we have EGS as a public good and no market place with Species at Risk
At the other end we have the beginnings of a market place for EGS, although as indirect one, with FEB cattle, access for hunting, viewscape
If we can measure EGS, such as water storage, will a market place develop
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EGS market Continuum
The market place must be allowed to align the economic and ecological signals
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Power Grazer Trailer
Self contained Two miles of turbo rope
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Power Grazer Cart
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