The Economic Value of Nature in Indiana

Across Indiana, business leaders, conservation organizations, outdoor recreation advocates and public agencies are recognizing the important role nature plays in supporting economic growth and community vitality. Healthy forests, rivers, wetlands and natural areas attract visitors, strengthen local businesses and help make Indiana a place where people want to live, work and invest.

That opportunity depends on conserving the natural systems that underpin Indiana's outdoor economy. From hiking and fishing to wildlife viewing and paddling, outdoor recreation relies on clean water, accessible public lands and healthy habitats. These same natural assets support tourism, improve quality of life and help communities attract and retain talent.

Recent analyses by the Indiana Department of Natural Resources and Indiana business leaders highlight the economic value of outdoor recreation and natural resources while underscoring the need for continued investment in conservation, recreation infrastructure and public access. By protecting the lands and waters that sustain Indiana's economy, we can ensure nature continues to deliver benefits for people, communities and businesses for generations to come.

Wetlands are among Indiana's most valuable natural assets. Often described as nature's sponges, they absorb and store excess water during heavy rains, helping to reduce flooding, protect communities and lessen the burden on costly infrastructure. Wetlands also filter pollutants, improve water quality and help recharge groundwater supplies, providing benefits that support people, businesses and local economies.

For generations, wetlands have played an important role in Indiana's landscape, supporting wildlife habitat, outdoor recreation and clean water. Yet the state has lost much of its historic wetland acreage, reducing the natural services these systems provide.

As wetlands disappear, communities can face greater flood risks, more expensive water management challenges and the loss of natural barriers that help protect homes, businesses and farms from increasingly intense rainfall events. Investing in wetlands today can help communities avoid greater costs and risks in the future.

The Nature Conservancy works across Indiana to identify, protect and restore wetlands, helping return these benefits to the landscape. From improving water quality and safeguarding drinking water resources to reducing flood risk, healthy wetlands demonstrate how investing in nature can deliver lasting value for people, communities and the state's economy.

Agriculture is a cornerstone of Indiana's economy, and farmers play a vital role in stewarding the state's land and water resources. Across Indiana, producers, conservation organizations, researchers and agricultural partners are working together to advance practices that strengthen farm operations while improving water quality and soil health.

Indiana's farmers are leaders in private land conservation, helping sustain a $35.1 billion agricultural industry while caring for the natural resources that support productive working lands.

The Nature Conservancy collaborates with farmers and local partners to implement proven conservation practices such as cover crops, nutrient management and edge-of-field solutions that help keep soil on the land and excess nutrients out of waterways. These efforts help protect streams, rivers and drinking water supplies while supporting resilient farms and rural communities.

By investing in both agricultural productivity and environmental stewardship, Indiana can build a future where thriving farms, healthy waterways and strong local economies go hand in hand.

Across Indiana, communities are facing more frequent flooding, heavier rainfall and increasing pressure on aging infrastructure.

Natural systems such as wetlands, floodplains and healthy watersheds provide cost-effective solutions that help reduce these risks while supporting cleaner water, healthier ecosystems and more resilient communities. These natural assets slow and store floodwaters, protect roads and other infrastructure, and help reduce the long-term costs associated with flood damage and water treatment. Wetlands are often described as nature's sponges because they absorb and gradually release excess water during heavy rain events, helping to lessen impacts on nearby communities.

The Nature Conservancy works with landowners, farmers, agencies and local partners to protect and restore wetlands and reconnect floodplains along Indiana's rivers. In the Wabash River basin, floodplain restoration is helping to reduce flood risk, improve water quality and create habitat for wildlife while providing benefits for nearby communities and working lands.

Beyond flood protection, healthy rivers, wetlands and watersheds help filter pollutants, recharge groundwater supplies and support the clean water that people, businesses and wildlife depend on every day. By investing in natural infrastructure, Indiana can strengthen resilience, avoid costly future impacts and ensure communities are better prepared for the challenges ahead.

At its core, land conservation is about safeguarding the forests, wetlands, prairies and waterways that make Indiana unique. These natural areas provide essential habitat for fish and wildlife, support biodiversity and help sustain the ecosystems that have shaped Indiana's landscape for generations. Protecting these places matters not only for the benefits they provide, but because they are an irreplaceable part of our natural heritage.

Conserved lands also enrich the lives of Hoosiers. They create opportunities to hike, fish, hunt, paddle and explore the outdoors while supporting recreation, tourism and the quality of life that communities value. Access to natural areas helps connect people with nature and contributes to healthier, more vibrant communities.

These lands and waters provide important everyday benefits as well. Forests, wetlands and floodplains help filter drinking water, reduce pollution, support wildlife habitat and improve resilience to flooding. Healthy natural systems strengthen public health, support local economies and provide services that communities rely on every day.

Conservation can also help guide smart growth and community development. Protecting key natural areas can reduce pressure on infrastructure, steer development away from flood-prone landscapes and preserve the natural features that make Indiana's cities and towns attractive places to live, work and invest. By balancing growth with conservation, Indiana can ensure that thriving communities and healthy natural systems continue to go hand in hand.

The benefits of conserving Indiana’s lands and waters can be seen in cleaner drinking water, healthier communities and thriving outdoor destinations. They can also be measured in economic impacts that support jobs, businesses and local economies across the state. Research consistently shows that investments in nature help reduce long-term costs while providing valuable benefits for people and communities.

Indiana’s forests, wetlands, rivers and working lands provide essential services that would be expensive to replace, from filtering water and reducing flood risk to supporting recreation and tourism. Conservation investments help safeguard these benefits while strengthening the natural infrastructure that communities and businesses depend on every day. Research has shown that treating drinking water from an unprotected watershed can cost significantly more than treating water from a protected one.

These benefits extend throughout Indiana’s economy. More than 3.2 million Hoosiers participate in outdoor recreation, generating approximately $15.7 billion in economic activity and supporting more than 105,000 jobs. Indiana’s natural assets also attract visitors, support tourism and help create the high quality of life that makes communities stronger and more competitive.

Across the country, a growing body of research is helping to better understand the full value of nature. Nature’s Dividends, a report from The Nature Conservancy, brings together findings from hundreds of studies to show how investments in land and water support economies, improve public health and reduce risks from disasters.

The report makes a clear case that conserving nature is not only important for ecosystems and wildlife, but also for people and communities. On average, every $1 invested in conservation returns about $4 in economic benefits while also delivering outcomes that are harder to measure but just as important, like cleaner air and water, safer communities and stronger connections to the natural world.

For Indiana, these findings help put local work into a broader context. They show that the benefits seen across the state are part of a much larger story about how nature supports communities and economies at every scale.