Institute of Water Research

Michigan farmers have a long history of conservation leadership. Across the state, growers have invested in practices such as reduced tillage, cover crops and grassed waterways to protect their land, improve soil health, and help protect Michigan’s water resources. 

Beginning August 31, 2026, farmers in Michigan’s portion of the Western Lake Erie Basin (WLEB) will have a new opportunity to build on that work through Michigan’s Pay-for-Performance (PfP) Program. The program, implemented by Michigan State University’s (MSU’s) Institute of Water Research (IWR) and funded by the Michigan Department of Agriculture and Rural Development (MDARD), recognizes and rewards farmers for conservation efforts that deliver measurable water quality benefits. 

A Focus on Results 

The PfP program takes an outcome-based approach to conservation. Rather than providing payments primarily for installing a particular conservation practice, the PfP program provides incentive payments based on modeled reductions in phosphorus loss from agricultural fields.

This approach recognizes that every farm and field is different. The conservation practices and management decisions that work on one operation may not fit another. By focusing on environmental outcomes, the program gives farmers flexibility in determining how they can achieve meaningful reductions in phosphorus loss while continuing to operate productive farms. 

Phosphorus is an important nutrient for agricultural production, but excess phosphorus entering waterways can contribute to harmful algal blooms. These blooms can affect recreation, drinking water supplies, aquatic ecosystems, and local economies throughout the WLEB. 

Keeping soil and nutrients where they belong, on the farm, can benefit both agricultural operations and the environment. The PfP program is one part of a broader, voluntary approach to addressing water quality challenges through practical, science-based solutions and partnerships. 

Recognizing Farmer Stewardship 

At the heart of the PfP program is a recognition that farmers are already making important investments in conservation. Participating growers will work with trained Technical Assistance Providers (TAPs), who can help evaluate field conditions, document existing and planned conservation practices, and estimate potential water quality outcomes. The program uses the Soil and Water Assessment Tool (SWAT+) to model phosphorus-loss reductions and help determine performance-based payments. This outcome-based model allows farmers to receive credit for conservation efforts that generate measurable environmental benefits, while maintaining flexibility in how those results are achieved. 

How Farmers Can Participate 

The program is currently available to eligible farms in Michigan’s portion of the Western Lake Erie Basin that are adopting a new conservation practice. Farmers interested in participating can begin by connecting with a participating TAPs. TAPs may include conservation specialists, agricultural service providers, crop advisors, MSU Extension personnel, and other conservation professionals trained through the program. A list of trained TAPs is available at https://iwr.msu.edu/pfp/Home/TAPList.  

The enrollment process generally includes: 
·               Connecting with a TAP 
·               Reviewing field eligibility requirements 
·               Identifying current and planned conservation practices 
·               Estimating environmental outcomes using the model 
·               Establishing a contact 
·               Implementing and verifying conservation practices 
·               Receiving payments based on modeled phosphorus reduction performance 

Throughout the process, participating farmers maintain control of their management decisions while receiving support from conservation professionals. 

A Farmer-Led Approach to Water Quality 

Michigan agriculture has consistently shown that conservation and productivity can go hand in hand. The PfP program builds on that tradition by creating another opportunity to support conservation while maintaining productivity and innovation. 

The success of voluntary conservation programs depends on farmers' willingness to test new approaches, share ideas, and work with conservation partners. Every farm and field is different, but together, these efforts can meaningfully improve water quality across the WLEB. 

IWR is proud to lead this farmer-led approach and looks forward to working with farmers, TAPs, and conservation partners as the PfP program launches.