Olmsted County pilot to expand: outcome‑based soil‑health payments credited with nitrate reductions

Representative Kristin Smith moved House File 2916 to expand Olmsted County’s Groundwater Protection Soil Health Initiative to the Southeast region. Committee testimony described an outcome‑based incentive program that pays farmers when performance standards—such as achieving at least 12 inches of cover crop growth—are met.

Skip Langer, soil conservation manager for the Olmsted County Soil and Water Conservation District, described the program’s development, its ARPA startup funding in 2023, and the program’s rapid farmer uptake: "We started to sign up in the fall of 2023 ... We had 55 producers sign up over 6,000 acres of cover crops [in 2023]; 113 producers in 2024; we have a 118 to date in 2025," he said. Langer also described monitoring results, citing tile‑sample data from Rice Creek: "Over that time, we saw a 27 percent reduction in nitrate from these tile samples."

Local farmers testified on practical benefits. Kevin Conley, a third‑generation farmer and founding member of local farmer groups, described reduced wind and water erosion, improved infiltration and lower nitrate in tile lines on fields with cover crops. Farmer Jeff Pagel said his dairy operation expanded cover‑crop usage and added oats as a cash crop because outcome‑based incentives reduced risk for trying new rotations.

Program features highlighted in testimony include a flexible menu of eligible practices (cover crops, small grains, haying/grazing options), an acreage cap per participant (150 acres in the pilot), measurable performance thresholds and payments that staff say produce additional (unpaid) enrollment beyond acres certified for payment.

Action: Representative Smith moved the bill and the committee laid the bill over for further consideration. Sponsors asked the committee to support regionwide expansion and referenced related legislation (House File 452) using Clean Water Fund dollars.