The Linked Deposit Program provides an economic incentive for farmers to voluntarily implement best management practices to control nonpoint source pollution. Voluntary efforts such as these may preclude the necessity for regulatory approaches. At the local level, the program is administered by the county SWCDs, which develop soil and water conservation plans, issue the Certificates of Qualification, and monitor the improvements. Farmers are familiar with their local SWCD and are used to working with them. The SWCDs have the existing expertise to recommend the BMPS which should be implemented on a particular farm.
Many farmers prefer to only work with the institutions that they have dealt with in the past.
The participating banks have the existing structure and experience to make and administer the loans. If this were not present, there would be an administrative expense on the part of the Ohio EPA to administer the loans. Participating banks earn the same amount of profit as they normally would on their other loans. In addition, the banks that participate can offer this as an additional service to their established agricultural customers. Thus, there is very little delay in the award of funds from the bank to the land owner.