ON FARMS AND CARBON CREDITS

No-till farming is just one of many ways agriculture can and will thrive in an emissions-constrained world. The Chicago Climate Exchange is a voluntary cap-and-trade market where it is already happening.

Correcting carbon credit misconceptions
Dave Miller, September 16, 2007 (The Montana Prairie Star)

WHO
Dave Miller, Chief Science Officer, AgraGate Climate Credits Corp.

There are farms all over the US that can profit from selling credits and do the atmosphere a good turn by not turning their soil. (click to enlarge)

WHAT
2 common misconceptions about potential carbon credit income for US rural landowners (farmers, ranchers and private forest owners): (1) Agricultural practices (no-till, grass planting) are not eligible for credits in the mandatory EU ETS but are in the voluntary Chicago Climate Exchange (CCX) market ; (2) Waiting to sign up for credits from the CCX market will not result in higher credit values.

WHEN
Credits for ag activity more than a year old will not be eligible, so holding 2006 – 2009 activities until 2010 or 2011 because credit value is likely to be higher will result in no sale at all.

WHERE
The EU ETS covers the European Union mandatory market. The CCX is a worldwide voluntary and likely to be the best and only place for US landowners to do business for the foreseeable future.

WHY
AgraGate (trader on the CCX) requires a five-year contract/commitment from landowners seeking to sell credits for ag activities but credits are priced yearly. This makes it possible to capture higher prices as the emerging market improves.

Developing market-based strategies to offer profit possibilities and combat climate change.

QUOTES
Miller: “I would not forward price my credits. I think the market price is likely to increase over time, but I think the current market price is the best option for currently qualifying activities and credits.”