Ecosystem Services

Some school trust lands contain wetlands, wildlife habitat, rare species, or other ecological features that can affect how the land is managed and its potential for conventional revenue-generating uses. In some cases, those same characteristics may create opportunities to generate financial value through environmental markets or incentive programs.

Ecosystem-service markets provide mechanisms for compensating landowners for conservation, restoration, or management activities that produce measurable environmental benefits. For school trust lands, these mechanisms may offer additional ways to generate revenue while retaining land in state ownership and maintaining its ecological functions.

Potential revenue mechanisms for school trust lands include wetland mitigation banking, habitat conservation banking, and carbon credits. The financial potential of these approaches depends on factors including market demand, project costs, regulatory requirements, land characteristics, contractual restrictions, and how participation may affect other uses, revenue opportunities, and the long-term value of the land.

Diversifying State Trust Land Revenue Through Conservation Uses

Image of Minnesota wetlands

Wetland Banking

Wetland mitigation banking creates marketable credits through the restoration, enhancement, or preservation of wetlands. On suitable school trust lands, wetland banking may provide a potential revenue source from lands whose aquatic features limit other revenue-generating uses.

canada lynx rubbing against tree

Habitat Banking

Habitat conservation banking creates marketable credits through the permanent conservation and management of habitat for threatened, endangered, or other protected species. On suitable school trust lands, habitat banking may provide a potential revenue source from lands with significant habitat value.

Image of Minnesota pine forest

Carbon Credits

Carbon markets create financial value by recognizing measurable reductions or removals of greenhouse-gas emissions, including carbon stored in forests and peatlands. On suitable school trust timberlands or peatlands, carbon-credit projects may provide an additional revenue source while maintaining or increasing carbon-storage capacity.