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The Role of Shared Governance

Achieving Environmental Outcomes on Agriculture Landscapes
by

Ag Resource Strategies, LLC

on 30 March 2016

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Transcript of The Role of Shared Governance

grain
biomass
forage
water
soil erosion
sedimentation
soil degradation
biodiversity loss
increase run-off
production instabilit
y
carbon sequestration
soil fertility
water storage
water filteration
biodiversity
production stability
habitat
Positive Externalities
Negative Externalities
$0 Value for natural capital appreciation
$0 Cost for natural capital degradation
$ Potential Profit
http://www.ecocommerce101.com/media.htm
federal/state agencies
institutions
local governments
corporations
non-profits/NGOs
farmer
agronomists
forester
Sector Silos are being connected
through data networks and communications
The Role of Shared Governance
Economy
Policy
Ecology
(c) 2013 Tim Gieseke All Rights Reserved.
biomass shed
cheese shed
env. liability shed
Symbiotic Demand works on the premise that many demanders can partake in the costs and values of public goods
Public Policy-makers
Private Policy-makers
Legislators
State Gov
Corporations
Conservation
Agencies
Land Managers
Numerical values were chosen to represent sustainable ecological and economical management outcomes
Ecosystem service outputs are generated in unison with traditional production outputs
water quality - 85 index
habitat - 73 index
soil health - 82 index
forage - 6 tons/acre
grains - 156 bushels/acre
meat - 350 pounds/acre
75
80
65
60
85
Achieving Environmental Outcomes on Agriculture Landscapes
Non-point source ecoservices and pollution are directly immeasurable as it pertains to origin and quantity.
Whether assessing the farm's 'back 40'...
...or nation's lower 48.
This presentation is based on research for and the application of EcoCommerce 101
A farm supplies multiple goods and ecoservices to multiple entities from the same plot of land,

and each entity demands specific parameters of various quantities to meet their sustainability definition.

The potential number of accounting scenarios is immense.
wq index
soil q index
habitat index
wq index
soilq index
wq index
soilq index
P-index
Adapt-N index
The Four Aspects of Governance
Presented at the 9th Annual Mn Env. Institute - Mn Bar Association April 17, 2013
Governance relates to decisions that:

define expectations,
grant power and
verify performance
creates
Public Practitioners
Private Practitioners
The Four Sectors of Governance
2) Why is Shared Governance Needed?
Agriculture Stakeholder pre-1970s
Agriculture Stakeholders 2013
Solutions From the Land, 2013
3) What are the enabling tools and technologies?
Increasing economical complexity
wq index
soilq index
habitat index
watershed
Increased political complexity
1) What is Shared Governance?
4) Creating a Shared Governance EcoCommerce Platform
These extreme values overwhelm centrally-planned systems,
but are manageable by individuals within an shared governance system
Markets are increasing in complexity:
politically
economically
ecologically
Increase in measurement complexity
Landscape management complexity
The Mathematics of Permutations states:
The number of potential land use patterns is
related to the number of fields within a geo-shed raised to the number of land use options."
A typical scenario:
- of 3 crop choices,
- a handful of conservation practices and
- a 2 or 3 year crop rotation

within a watershed of 1000 fields produces an astronomical number of management scenarios
Supply web complexity
Land management metrics serve as a basis for an environmental "market signal"
Farmscape Intelligence
New Relationships
Symbiotic Demand
Measurements and Market Signals
EcoCommerce values include:
assurance,
market access,
liability protection,
supply chain accountability,
natural capital management and
ecosystem service accounting.
Landscape/Geo-shed Intelligence
tgieseke@agresourcestrategies.com
Shared Governance:

functions as an outcome-based process,
delegates various roles,
incorporates all stakeholders
As practitioners gain access to cheap tools of innovation, communications, networks, media and data - a shift to a broader governance model is naturally occurring
Market demands are expanding
origination
off-farm impacts
full product transparency
industry footprints
New layers of complexity are created when governments, corporations, markets and citizens seek new values
New markets instigate transactions, new business relationships, data, intelligence and economic values
When interdependent collaboration reduces transaction costs to the lowest level, markets are able to bring externalized values into the economy
Solutions From the Land, 2013
Many farmscapes make up a watershed
Many farmscapes make up a milk-shed, etc.
Public Policy-makers - 70%
Public Practitioners - 20%
Private Practitioners - 4%
Private Policy-makers - 6%
Shared Governance Compass
Provides the context and an evaluation of the extent that shared governance is applied
A shift in governance from public policy-maker to private policy-maker & practitioner engages the stakeholders with access to critical information, abilities and values
or a non-contiguous land area
Each entity can define a level of sustainability independent of others
What are the steps/processes needed to capture emerging values?
A Shared Governance structure capitalizes on networks and data management to develop new economic relationships that reduce transaction costs and allows age-old economic forces to address 21st century ecological needs.
Index Hopper
Pheasant
Index
N-P
Nutrient
Indices
Habitat
Suitability
Index
Water
Quality
Index
CARBON
Index
Pollinator
Index
Duck
Nesting
Index
Soil
Conditioning
Index
This a collaborative and constructive component where organizations can express their values and define what types of activities and conditions define sustainability
Note:
Many strive for the "perfect" metric and score - while it is a very important aspect, it is the economic relationships around the metric that achieves it
EcoCommerce values are realized by addressing the new set of complexities:
biomass shed
cheese shed
env. liability shed
A farm provides multiple goods and services to multiple entities,

and each entity requires various parameters and scales to define sustainability
wq index
soil q index
habitat index
wq index
soilq index
wq index
soilq index
P-index
Adapt-N index
wq index
soilq index
habitat index
watershed
Supply web complexity
Non-point source ecoservices and pollution are directly immeasurable as it pertains to origin and quantity.
Whether assessing the farm's 'back 40'...
...or nation's lower 48.
Increase in measurement complexity
grain
biomass
forage
water
soil erosion
sedimentation
soil degradation
biodiversity loss
increase run-off
production instabilit
y
carbon sequestration
soil fertility
water storage
water filteration
biodiversity
production stability
habitat
Positive Externalities
Negative Externalities
$0 Value for natural capital appreciation
$0 Cost for natural capital degradation
$ Potential Profit
Increasing economical complexity
These extreme values overwhelm centrally-planned systems,
but are manageable by individuals within an shared governance system
Landscape management complexity
The Mathematics of Permutations states:
The number of potential land use patterns is
related to the number of fields within a geo-shed raised to the number of land use options."
A typical scenario:
- of 3 crop choices,
- a handful of conservation practices and
- a 2 or 3 year crop rotation

within a watershed of 1000 fields produces an astronomical number of management scenarios
Policy Stakeholders
Economic Capital
Market Supply Webs
Landscape Management
Measurement Scale
Shared Governance EcoCommerce benefits stakeholders by improving:

Landscape data
Connections to land managers
Targeting of financial & technical assistance
Accounting for improvements
Return on Investment analysis
Stakeholder engagement long-term
Connections to agribusiness
Trust with agriculture producers
The unique properties of EcoCommerce allows it to be applied broadly or narrowly:

to "Full Product Transparency" systems or
an isolated, local watershed improvement project
It is a system that can grow independently in various:

scales,
regions,
sectors and
markets and eventually integrated somewhat seamlessly
The following steps provide the outline to create a Shared Governance EcoCommerce Platform and the benefits it provides
click for reviews
1) Identify Stakeholders or partner with an established project(s)
There are hundreds, if not thousands in progress today
3) Identify the natural resource values that the project is seeking or producing
2) Evaluate the type of Governance Structure that the group has or will form using the Shared Governance Compass
What sectors are the stakeholders in and what roles and responsibilities do they have?
4) Compile representative land management metrics that represent those values
5) Choose the list of metrics
6) Assign values to those metrics
Market Access
Reduced Liability
Program Participation
Reduced Tax
Monetary
Credit Market
Regulatory Assurance
7) Support and allow "market" to materialize
Essentially, a "market signal" has been created - Unit & Price
With Unit & Price/Value, one does not need central control for people to figure out what to do - entrepreneurs and innovators will
Note:
One or several regional centralized entities (business, NGO, government) needs to accept data from those who create the units and disseminate to those who value them.
Shared Governance EcoCommerce Platform and Flow Path
AgEQA Technician
Ag Producer
Agronomist
Local Gov Units
SWCD
Federal Agencies
State Agencies
NGOs
Corporations
contractors
agronomists
NGOs
AgEQA Technican

SWCDs/NRCS
AgEQA Technician
Verification
Ag Producer
TMDL Planner
County Water Plan
Watershed District
Well-head Protection Orgs
Sustainability Supply Webs
USDA NRCS/FSA
Conservation Agencies
Local Governments/SWCD
Regulatory Agencies
Industry
Corporations
Retailers
Integrate and Differentiate geo-based data
Ag Producer
AgEQA Technician
Annual Confirmation
Local, State &/or Federal
Governing Unit
Sustainability Rep
Audit %
AgEQA Scores compiled by HUC-8 Watershed or geo-shed
Creates Watershed or other Geo-based Market Intelligence
Public & Private Policy-makers
Public & Private Practitioners

Geo-shed Monitoring
Re-evaluate Land Management/Product Strategies and Standards
Legislators
Boards
citizen groups
food processors
utilities
sustainability supply webs
environmental liability insurers
bio-energy refineries
Ag Producer
allows integration of landscape assessment
and environmental and/or product outcomes
land management metrics calculated by...
USDA Farm Bill
ecoservice
credit markets
sustainability baseline
Symbiotic Demand
non-exclusive market values
exclusive market values
sustainability standards
(EcoCommerce Market Signals)
AgEQA -
Environmental Quantified Assets
Private Practitioners
on-the-ground assistance
supporting programs
Several AgEQA projects were completed from 2006-2014. This diagram illustrates how new relationships created data and how value flows did and could move from farm to end-users
Private Practitioners
Public & Private Policy-makers
Foreword

Most new systems seem complex and out of reach. EcoCommerce 101 and the Shared Governance EcoCommerce Platform & Flow Path diagram (last slide summary) may appear to fall in this category.

But like the complex economic system we all engage in today, this system works on the same principle:

You do not need to understand the breadth and depth of economic science to engage in economic activity. The only thing that is required, is that you understand the market signal that you need to generate and/or respond to that meets your interests and objectives.
A Shared Governance Compass can illustrate which sectors are providing what degree of governance
externalities are symptoms of a failing economic system
New information creates new values through transactions and aggregated solutions
Full transcript