The Impact of Federal Programs on Wetlands - Vol. II


Chapter 1


EXECUTIVE SUMMARY


Focus of the Report

This is the second of two reports to Congress on the impact of Federal programs on wetlands.1 Volume I was submitted to Congress in 1988, and examined how Federal programs have affected wetlands in the bottomland hardwoods of the Lower Mississippi Alluvial Plain and the prairie potholes of the Upper Midwest. Volume II focuses on 17 additional study areas, selected because they reflect the broad array of problems facing wetlands nationwide:

A map of the study areas for Volumes I and II appears in Chapter 2. (See Figure II-1.)

Volume II is divided into five parts. The four chapters in Part I describe the Federal programs affecting wetlands: agriculture; water development and management; infrastructure, local development, and housing; and resource use, extraction, and development. Parts II through V are organized regionally and examine the 17 study areas.

Background

The Function of Wetlands

Wetlands are a vital element in the biosphere and produce numerous benefits for society. They provide critical nursery habitat for many species of fish and wildlife. By temporarily storing large quantities of water, wetlands play an important role in reducing flooding problems and recharging ground water. They help to maintain water quality by filtering out pollutants and sediments, and serve to control erosion by trapping soil washed from nearby uplands. In addition, wetlands are a source of recreation, timber, and other natural products for commercial use. Federal, State, and private conservation actions have slowed but not stopped their disappearance and functional degradation.

The Nature and Extent of Wetland Losses

One hundred and four million acres (47 percent) of the original 221 million acres of wetlands remain in the contiguous 48 States, accounting for 5.0 percent of the land area. Annual losses in the period mid-1970s to mid-1980s averaged 290,000 acres. There are approximately 170 million acres of wetlands in Alaska, with less than 0.1 percent lost over the last 200 years. Lost acreage alone, however, does not depict the full extent of the problem. Few wetlands are in pristine condition. Comprehensive studies of the extent of the degradation are only now beginning, however.2

Since the mid-1980s, indications are that wetland losses are slowing. From 1987 to 1990, programs to restore wetlands under the 1985 Food Security Act have added about 90.0 thousand acres to the Nation's wetlands inventory. Other programs to protect wetlands, like the Swampbuster provision of the Food Security Act, have generated support for conserving wetlands. In addition, public education and extension efforts have helped heighten our Nation's awareness of the values of wetlands.

Approximately three-fourths of the remaining wetlands in the continental United States are privately owned. Only about 0.5 percent of these have protective covenants on them. Furthermore, some wetland conversions are not covered by Section 404 of the Clean Water Act (the principal Federal wetlands regulatory program).

The most important economic sector absorbing wetlands is the agricultural sector. As of 1985, 75 million acres of the nation's cropland had been developed by draining land. Significant portions of this drainage were conducted with Federal funds, loans, and technical assistance. Figure I-1 depicts land in organized drainage enterprises.

Figure I-1: LAND IN ORGANIZED DRAINAGE ENTERPRISES

LAND IN ORGANIZED DRAINAGE ENTERPRISES

Source: USDA, Farm Drainage in the United States, and Prospects, ERS publications no. 1455, Washington, DC, 1987

Digging channels, depositing spoil, and constructing access roads destroys riparian vegetation and reduces or eliminates beneficial filtering, flood control, and erosion control capacity. Once in place, the channels drain wetlands, increasing the rate of runoff which can cause downstream erosion, flooding, and surges of nutrient-loaded water in sensitive coastal marshes.

From the mid-1970s to the mid-1980s, wetland conversions to agricultural land uses accounted for 54.0 percent of the losses. This is an appreciable change from trends observed during the period mid-1950s to mid-1970s in which agricultural conversion represented 87.0 percent of all wetland losses. This percentage change reflects decreases in wetland acreage lost to agriculture rather than a significant increase in losses from other activities. Urban land use conversions accounted for about 5.0 percent of the wetlands lost from the mid-1970s to the mid-1980s, while conversions to "other" land uses accounted for 41.0 percent of the losses. A word of caution: the substantial portion of conversions classified as "other" is attributable to wetlands that have been cleared and drained, but not yet put to identifiable uses.

The Economics of Conversion

That so much wetland conversion has occurred should not be surprising. The United States started with a great abundance of wetlands. With wetlands in abundance, other uses of the land were seen as more valuable. Land was considered to be more valuable when devoted to the production of market goods rather than left in its natural state, producing environmental services and amenities. Further, the initial conversions did relatively little environmental damage. Thus, even if the ecological functions of wetlands had initially been well understood and appreciated (and they usually were not), it would likely have been deemed to be in society's interest to convert wetlands during the early years of development.

As with all non-market commodities, however, it is difficult to determine the economic value of wetlands, and so there is no price signal indicating that the value of wetlands increases along with their scarcity and that they merit conservation. Therefore, the normal tendency of a private market is to encourage the conversion of wetlands to other uses. Wetlands constitute a classical example of market failure: the wetland owner generally cannot capture the benefits of his resource for his own use or sale. The flood protection benefits of wetlands accrue to others downstream. Many of the fish and wildlife that breed in and inhabit the wetlands migrate, and are captured or enjoyed by others. The ground water recharge and sediment trapping benefits cannot be commercially exploited. For the owner of a wetland to benefit economically from his resource, he usually has to alter it, convert it, and develop it.

The rate of conversion and development was not left to the determination of an unfettered, private market, however. Starting with the Swamp Lands Acts in 1849 and 1850, government actions supported the conversion and development of wetlands. The Swamp Lands Acts ceded millions of acres of swamp lands to the States with the proviso that the States sell the lands and use the proceeds for reclamation. Programs for flood control, drainage, irrigation, and hydroelectric power grew throughout the 20th century. The projects effected massive changes in the nation's hydrologic regime, and made it both technically feasible and financially attractive to develop the land.

Thus, in years past, the conversion and degradation of major acreages of wetland were the result of both concerted public policy and hundreds of thousands of decisions by people attempting to enhance their economic status. It is only recently that we have realized that wetlands have sufficient value in themselves to warrant preserving most of those remaining. In the interim, many of our wetland ecosystems have been heavily depleted and are now highly stressed. Thus, although early conversions may have been viewed as a wise use of resources, most wetlands whose conversion would be most lucrative have long been developed, and those remaining are both less desirable from a commercial perspective and more valuable environmentally.

The Current Federal Role

Today, there are a number of Federal programs designed to protect wetlands, but Federal policy is neither comprehensive nor consistent with respect to wetland use. Indeed, Federal programs affect wetlands in opposing ways. Some Federal programs encourage wetland conversion by reducing the cost, increasing the revenue, and/or reducing the risk of wetland development. Simultaneously, other Federal programs restrict or manage wetland use through a variety of techniques and programs: acquisition and easement; regulation; consultation among Federal agencies to identify and either avoid or mitigate the effects of agency actions; and reduction or withdrawal of Federal financial incentives to develop wetlands.

This report to Congress focuses primarily on the last of these approaches to wetland conservation. Although more vigorous regulation or increased acquisition would preserve more wetlands, these approaches could be costly. The Administration prefers redesigning Federal programs which produce undesired effects on wetlands to additional land acquisition or regulation. This strategy has several appealing features:

Although restricting Federal financial support for unsound development cannot be relied on as the only conservation tool, it should be among the first approaches to the problem of wetland loss. Many Federal programs that affect wetlands are designed and financed in a way that violates the beneficiary-pay principle of public finance. They distort market signals and provide subsidies that have had negative environmental effects. Optimally, these programs should be redesigned in order to present those who benefit from the programs and projects with the full cost of their activities. Volume II takes a broad look at over 35 Federal programs implicated in wetland decline, illustrating the range of effects that Federal activities can have on wetland ecosystems.

Findings and Conclusions

The following discussion summarizes the background information, findings, and conclusions for the 17 study areas. For each area, the principal causes of wetland loss and functional degradation are identified, and recommendations for future wetland protection are listed. It should be noted that the recommendations are selective, with the purpose of giving the reader insight into the direction of the recommended approach to the problems identified. For the complete set of recommendations, the reader should refer to the end of each area chapter in Parts II through V.

Florida Everglades

  1. Description and Importance

  2. Extent and Source of Losses

  3. Impact of Federal Programs

  4. Agriculture Programs

  5. Urban Development and Transportation Programs

  6. Recommendations

Coastal Louisiana

  1. Description and Importance

  2. Extent of the Loss

  3. Sources of Loss

  4. Impact of Federal Programs

  5. Recommendations

Galveston Bay of Texas

  1. Description and Importance

  2. Extent and Sources of Loss and Degradation

  3. Impact of Federal Programs

  4. Recommendations

Puerto Rican Coast 5

  1. Description and Importance

  2. Impact of Development

  3. The Federal Role

  4. Recommendations

California's Central Valley

  1. Description and Importance

  2. Extent of Loss

  3. Source of Loss

  4. Impact of Federal Programs

  5. Ineffectiveness of Swampbuster

  6. Recommendations

Western Riparian Wetlands

  1. Importance

  2. Extent of Loss

  3. Sources of Loss and Degradation

  4. Impact of Federal Programs

  5. Recommendations

Southeastern Alaska

  1. Description and Importance

  2. Extent and Source of Losses

  3. Impact of Federal Programs

  4. Recommendations

Western Alaska

  1. Description and Importance

  2. Extent and Sources of Loss

  3. Impact of Federal Programs

  4. Recommendations

Delmarva Peninsula

  1. Description and Importance

  2. Extent and Sources of Loss

  3. Impact of Federal Programs

  4. Recommendations

The Pocosins of North Carolina

  1. Description and Importance

  2. Extent and Source of Loss

  3. Status and Prospects

  4. The Federal Role

  5. Recommendations

Northeastern New Jersey

  1. Description and Importance

  2. Extent and Sources of Loss

  3. Impact of Federal Programs

  4. Recommendations

Michigan's Coastal Wetlands

  1. Description and Importance

  2. Extent and Sources of Loss

  3. Impact of Federal Programs

  4. Recommendations

Michigan's Northern Forested Wetlands

  1. Description and Importance

  2. Extent and Sources of Loss

  3. Impact of Government Programs

  4. Recommendations

Rainwater Basin of Nebraska

  1. Description and Importance

  2. Extent and Source of Loss

  3. Impact of Federal Programs

  4. Recommendations


Footnotes

1 The requirement for this report appeared first in the FY85 appropriations act for the Department of the Interior, but was amended by the Emergency Wetlands Resources Act of 1986 (PL99-645, section 402).

2 In 1988, the Environmental Monitoring and Assessment Program (EMAP) of the Environmental Protection Agency was initiated to provide improved information on the current status and long-term trends in the condition of the Nation's ecological resources. EMAP has a wetlands component. Its first interpretive report, describing the conditions of coastal wetlands, is scheduled for completion in 1996.

3 Marketing orders are Government-sanctioned rules between producers and handlers to establish production and commodity standards and exert an influence on market price. See discussion in chapter 7.

4 Of course, any future sea level rise may be due in part to global warming, and hence, related to human activity.

5 Although the text focuses on Puerto Rico, the problems and trends apply to the Virgin Islands, as well.

6 Most wetlands in the Central Valley are managed for wintering waterfowl habitat which requires a large volume of water in the late fall.

7 Widespread conversion of wetlands occurred in the Valley long before Federal water development. Farmers diked the floodplains for cultivation, but their efforts were only partly successful. The process of reclaiming the lands and developing the area took many years and required extensive Federal assistance.

8 R. G. Stutheit, Work Plan S-87, Mortality and Disease Investigations, W-15-R-44, Nebraska Game and Parks Commission, 1988.


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For more information on the impact of Federal programs on wetlands,
contact Jon H. Goldstein by email at jon_goldstein@ios.doi.gov or
by telephone at 202-208-4077


URL: http://www.doi.gov/oepc/wetlands2/v2ch1.html
Pagemaster: smoore@usgs.gov
Revised: 07-09-96