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Welcome
The
Kentucky Corn Growers Association
and Kentucky Small Grain Growers
Association have partnered with the
Chicago Climate Exchange
to offer new revenue opportunities for farmland and forestland. The
KyCGA/KySGGA Carbon Trading Program seeks to simplify the process of
earning and selling carbon credits for farming operations and forestry
landowners.
Many farmers in
Kentucky are already doing everything that is necessary to qualify for
this program – those practices just need to be documented and enrolled
as a project. KyCGA/KySGGA staff will easily handle most of that
enrollment process so that farmers can begin to receive payments.
Projects comprising millions of acres have already proved to add profit
to farms throughout the country. Since 2006, over 100 farms in Kentucky
have been enrolled through KyCGA/KySGGA.
Please browse this web
site to familiarize yourself with eligibility
requirements, income potential, and
frequently asked questions. The
enrollment forms contain all of the paperwork
that is to be required of farmers. If you have a concern that is not
answered by this website, do not hesitate to
contact us to get answers to
whatever questions you might want to discuss.
This program has been
established entirely as a member-service of KyCGA/KySGGA. No service fee
will be charged by KyCGA or KySGGA to Kentucky members who participate
in soil programs. A five percent fee will be charged to participants in
other states and to forestry enrollees.
News:
May 23, 2008: Participants in the Carbon Trading Program should
expect to receive a check by the end of May. Carbon Credit prices rose
steeply this Spring. In February, they were below $2.00 per metric ton –
by May, they had reached $7.00. KyCGA staff traded the last of the
credits that will be available in 2008 for $7.05 (net) on May 20, 2008.
In total, $250,000 will be mailed to almost 100 Carbon Trading Program
participants.
February 2008, Pool 1: Credits for Pool 1, Vintage 2006 were sold
in early February. The verification process for Vintage 2007
credits are in the final stages. All of the Pool 1 Vintage 2007
credits are expected to be issued by the end of February. Those
credits will be sold and the proceeds from all sales will be distributed
in early March.
February 2008, Pool 2: Credits for Vintage 2006 and Vintage 2007 were sold
in early February at various trading price between $3.70 and $4.50 per
Metric Ton. The proceeds from that sale is expected by the end of
February and checks should be sent out in early March.
August 2007, Pool 1: - 2005 credits have been
sold. 2006 credits will be sold when the price per metric ton becomes
more profitable. Pool 1 participants can expect a check from the sale of
2005 credits.
March 20, 2007 - Chicago Climate Exchange Approves
Expanded Area Eligibility for Soil Offset Projects: All Kentucky
Counties are Included in the Program
March 20, 2007 - Chicago Climate Exchange Increases
the Conservation-Tillage Soil Offset Rate to 0.6 Metric Tons per Acre
from 0.5 Metric Tons per Acre thus Raising Potential Income for Farmers.
The Pasture Soil Offset rate was raised form 0.75 to 1.0 metric tons per
Acre.
Read the March 20, 2007 Press Release
Resources:
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Summary of Available Programs
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Soil -
Conservation Tillage Section: |
- Minimum of a five-year
contractual commitment to
continuous
no-till or strip-till on enrolled acres.
- Tillage Practice must leave
at least two-thirds of the soil
surface
undisturbed and a least two-thirds of the residue remaining
on the field surface.
- Contracts are typically
dated retroactive to the previous crop
year.
- 0.6 Metric Tons of Carbon
Credit per acre, per year issued in
Kentucky.
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Soil -
New Grass Plantings Section: |
- Eligible acres must have
been converted to grass/pasture
since January 1,
1999.
- Project owners must
contractually commit to leave the land
in pasture for a
minimum of five years.
- Grazing and Hay Cutting is
allowed.
- CRP, CREP and other USDA
programs are eligible.
- Metric Tons of Carbon Credit
per acre, per year issued in
Kentucky.
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Forestry
- Afforestation Section: |
- New tree plantings must have
been initiated on or after
January 1, 1990.
- Project Owners must
demonstrate a long-term commitment
to maintain
carbon stocks in forestry.
- Must sign a ‘Letter of
Intent’ to not remove tree biomass
(such as
harvesting or thinning) for 15 years.
- Carbon Credit issuance
varies by project, region, species, etc.
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Forestry
- Managed Forest Section: |
- Forest must be enrolled in a
sustainable forest management
program (i.e.
American Tree Farm System, Sustainable Forestry Initiative
or Forest Stewardship Council).
- Thinning and Harvesting are
allowed.
- Annual quantification based
on an approved CCX growth
and yield model
is required.
- Minimum of 15-year
commitment to keep land in forestry.
- Carbon Credit issuance
varies by project, region, species, etc.
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