FARMERS WATCHING EMISSIONS TRADING MARKETS

There are a variety of land management practices which maximize emissions sequestration. The primary practices are no-till planting, restoring wetlands, returning cropland to grassland or forest, planting conservation buffers and using cover crops. These practices allow the soil to sequester atmospheric emissions. For each ton of carbon dioxide equivalent (CO2e) a farmer’s practice allows his land to store, he earns 1 emissions credit. The credits are sold via the Chicago Climate Exchange (CCX) at market rates to companies seeking to offset their emissions.

This process is already generating income for farmers who use emissions reducing strategies. The February 5 close for credits was $3.25/ton CO2e. But when the Senate acts to institute a mandatory cap-and-trade system in the U.S. similar to the EU ETS, these credits are likely to jump in value. The new carbon-constrained world is going to change a lot of ways of life.

See ON FARMS AND CARBON CREDITS and OFFSET GHG BY FOREST OR FARM

Reduced tilling. Sounds like less work. And it earns money. This can't be farming. (click to enlarge)

Ag Web site adds links to carbon credits program
February 2, 2008 (Rapid City Journal)

WHO
South Dakota Department of Agriculture (Dept of Ag), Chicago Climate Exchange (CCX)

South Dakota farmers will join Iowa farmers in... (click to enlarge)

WHAT
- By adding links to websites giving South Dakota farmers information on how to use emissions credits markets and how to manage their land to maximize their emissions credits value, the state’s official agricultural agency has given official sanction to the growing interest in a whole new way of thinking about farming.
- The websites linked are South Dakota Farm Bureau Carbon Credit Market Information and South Dakota and Farmer’s Union Carbon Credit Program.

WHEN
- CCX has traded greenhouse gas emission allowances since 2003.
- CCX contracts run through 2010.

...watching the market. (click to enlarge)

WHERE
- The programs linked at the Department of Agriculture page provide information for selling credits on the Chicago Climate Exchange (CCX).
- CCX trades emissions allowances for projects in the U.S. and Brazil.
- South Dakota’s Dept. of Ag follows the lead of the Iowa Farm Bureau in creating linkage between landowners and the CCX.

WHY
- CCX is the only U.S. legally binding voluntary greenhouse gas reduction and trading system.
- A no-till planted corn or soybean field stores one-half ton per acre of CO2e/year. Returning cropland to a grass stand sequesters at least 1 and 1/4 tons of CO2e per acre.
- The Farm Bureau and Farmer’s Union, the links provided by the Dept. of Ag, pool Iowa and South Dakota farmers’ sequestration resources so as to trade credits in large enough blocks to have a presence in the CCX.
- The Farmer’s Union website provides the information in a very user-friendly, question-and-answer format.

Emissions trading: It might stop climate change AND buy a new barn. (click to enlarge)

QUOTES
- Wayne Smith, director of field services, South Dakota Farm Bureau: “The carbon stored in the soil creates an offset, or credit, that can be sold on the CCX. Not only is no-till good for the soil and environment, it can also help facilitate adoption of carbon emission reductions by companies…Companies will pay farmers to reduce carbon through no-till conservation practices.”
- Farmer’s Union: “The eligible area for enrollment into the Farmers Union Carbon Credit Program has been recently expanded to include all counties in the state. Also just announced is a new program for 'Native Rangeland'.”