Ecosystem Market – Wildlife Habitat
Project Highlight: Sandhill Habitat Credit Trading Longleaf pine once occupied 90 million acres in the Southeast, but today roughly covers only 3 million acres as a result of development, habitat conversion, and fire suppression. Consequently, most of the wildlife dependent on the longleaf pine and sandhill ecosystem has suffered a dramatic decline, including the federally listed gopher tortoise. The gopher tortoise is currently listed as threatened under the Endangered Species Act in the western portion of its range and the U.S. Fish & Wildlife Service has received a petition to include the eastern population in Alabama, Georgia, and Florida. With over 80% of land in private ownership in the Southeast, the greatest potential for conservation, restoration, and management of sandhill habitat lies in the hands of family woodland owners
To address these issues, the American Forest Foundation and Longleaf Alliance are developing and implementing a habitat credit trading system for the gopher tortoise and associated species on family woodlands in portions of Georgia and Alabama. The framework complements other regional efforts aimed at precluding the need to federally list the eastern population of the gopher tortoise.
Under the program, woodland owners within a particular area become eligible for assistance through a reverse auction process. Woodland owners that meet the baseline criteria are issued credits for gopher tortoise habitat and/or agreed upon management activities. These credits are then purchased to offset an expected or planned impact on sandhill habitat. These credits can also be purchased to safeguard company or agency actions should the eastern range of the gopher tortoise become listed. The reverse auction process considers the quality of the habitat contribution and the landowner’s bid requirements, ultimately driving the price downward.
The “currency” involved in the habit trading system is habitat credits. A credit is a unit of trade that places monetary value on habitat preservation or restoration. Credits are quantified in acres. However, not all acreage is equivalent. The acreage is weighted based on ecological factors, priority locations, and other relevant variables.
Minimum requirements for landowner eligibility and participation will help ensure a net conservation benefit. These include:
- Agreement and Management Plan finalized and signed by all parties
- Conservation Easement conveyed
- Endowment secured
- Baseline habitat conditions determined and gopher tortoise population estimated
- Minimum area set at 200 acres of habitable area, with more deemed better. A parcel of at least 10 acres may be considered if adjacent to protected lands of at least 200 acres with no major barriers. 200 acres is minimum acreage to support a viable population. Viable population is defined as 80 tortoises.
A holistic habitat focus will better address the primary causes for gopher tortoise population decline, while simultaneously addressing the suite of other species who utilize the longleaf system. This approach is different from traditional species conservation banking focused on translocation of animals. Traditional approaches have led to varying degrees of successful recovery and often fail to address the true drivers of species imperilment – land use change and forest loss.
Reverse Auction: A Basic Scenario Landowners Adam, Betty, and Charlie own woodlands that meet the minimum requirements. Adam’s 200 acre property is in great condition, since he’s been managing with prescribed fire for the last fifteen years. Betty’s 200 acre property is in pretty good condition since she’s recently started burning and converting to longleaf. Charlie’s 200 acre property fits the requirements, but needs financial assistance for converting to longleaf.
Corporation A is expanding their stores and plans on building a new plant on 100 acres of land. This land is prime sandhill habitat, which will be compromised by the new facility. They are interested in offsetting their impact on the habitat by ensuring that someone else is permanently protecting gopher tortoise and other species dependent on sandhill habitat. Based on their projected impact, they need to buy 8 credits from woodland owners willing to manage and protect the sandhill habitat species.
Adam’s property is worth 20 credits since it’s in great shape, but his management costs run him $100/acre. Betty’s property is worth 16 credits since it’s in good shape, but her management costs are around $75/acre. Charlie’s property is only worth 12 credits since it’s in decent shape, and his management costs are only $50/acre.
Name
| Acres
| Credits
| Cost/acre
|
Adam
| 200
| 20
| $100 |
Betty
| 200
| 16
| $75 |
Charlie
| 200
| 12
| $50 |
Corporation A sees that Adam is willing to sell 20 credits for $20,000 or 8 credits for $8,000. Betty is willing to sell 16 credits for $15,000 or 8 credits for $7,500. Charlie is willing to sell 12 credits for $10,000 or 8 credits for $6,667.
In this scenario, because Charlie is willing to offer his credits for less he’s the likely winner. If Betty or Adam is able to lower their price per acre in management, they might be able to compete for Corporation A’s money. In this case, the money will help Charlie plant more longleaf and enhance the quality of his sandhill habitat. However, because these credits are sold to Corporation A his woodlands are now “off the market” and can only be sold or traded by Corporation A.
