The state’s first-ever live auction of wetland mitigation credits is complete.
The South Dakota Farm Bureau administers the program and conducted the auction Friday in Wentworth.
Wetland credits are typically not auctioned. They're usually purchased at a flat rate. The seller of the credits, Mark Mergen, approached the Farm Bureau and asked it to conduct an auction.
Brian Top of the South Dakota Farm Bureau said credits are awarded to landowners who restore wetlands. The purchasers are landowners looking to drain a wetland on their property.
Top said the credit program helps landowners stay compliant with U.S. Department of Agriculture rules.
“In order to participate in USDA programs, you cannot drain wetlands unless you replace them somehow," Top said. "So, this is for farmers that need to drain or alter wetlands and still remain eligible for USDA programs.”
Wetlands restored as part of the credits program are permanently enrolled into an easement that protects them from being drained.
One credit equals about 1 acre. There were 16.1 credits up for auction Friday, with the biggest sale totaling 4.9 credits for about $115,000, and the smallest being 0.9 for about $15,000.
The credits that were auctioned are usable in the Lower Big Sioux Geographical Service Area in the southeastern portion of the state.
The seller of the credits, Mark Mergen, received 80% of the proceeds, with the remaining 20% going toward managing and maintaining the program.
The Farm Bureau said it's hopeful the auction will incentivize more landowners to restore wetlands on their property.
