Income Potential

As an aggregator, KyCGA/KySGGA has a goal of obtaining $2.00 per acre in revenue for conservation tillage projects. Of course, this goal can be amended based on market forecasts and projections. Once credits are marketed participants can expect checks as soon as practical.

The following equation is intended to provide an understanding of a typical revenue caluculation. Enrollees should keep in mind that the carbon market fluctuates and prices received could be higher or lower than what is projected.

Conservation Till Soil Offset Projects:

1,000 acres
x 0.6 metric tons per acre per year
x $4.50 per metric ton**
- $0.20 per metric ton CO2 CCX fee ($120)
= $2,580 per year

This pricing scenario would allow $2.58 per acre per year revenue to the farmer.

** Average price based on historical data.
For current trading price, go to www.theccx.com. 

Grassland Soil Offset Projects:

1,000 acres
x1.0 metric tons CO2 per acre per year
x $4.50 per metric ton**
- $0.20 per metric ton CO2 CCX fee ($200)
= $4,300 per year

These income levels are not guaranteed by the KyCGA/KySGGA or the CCX, but for reference only. The carbon market fluctuates.

Forestry Offset Projects:

Carbon content on forestry projects are determined by the type and age of the trees planted. Forestry projects in Kentucky are currently earning between 1.51 and 7.11 metric tons of CO2 per acre. CCX makes the final determination of CO2 in the forestry project.

If you have a question, please call us at 800-326-0906 or email us at info@kycarbon.com.