News
FOR IMMEDIATE
RELEASE
Kentucky
Farmers and Foresters are Encouraged to Take Advantage of State-wide
Carbon Credit Trading Program for Additional Income
(March 20, 2007 –
Eastwood, KY) March 31, 2007 is the sign-up deadline for growers and
foresters to take advantage of an additional income source, soil carbon
credit trading.
According to carbon
credit trading entity, the Chicago Climate Exchange (CCX), historical
trading data has shown conservation tillage and pasture/hay acreage
project enrollees are earning about $2 per acre per year under the
current contract period. Forestry project participation has the
potential to earn enrollees much more depending the age and type of
trees planted.
When sign-up for the
program began in October of last year, only a third of Kentucky’s
counties were eligible. Today, CCX announced the soil offset carbon
credit trading program is now available to land managers state wide. The
Kentucky Corn Growers Association (KyCGA) and Kentucky Small Grain
Growers Association (KySGGA), registered CCX aggregators, partnered on
the project to offer growers additional revenue opportunities for the
sequestered carbon in farmland.
“Since we began
pooling Kentucky acres for program participation, we found that many
farmers were interested in ineligible areas of the state,” said KyCGA/KySGGA
Executive Director Todd Barlow. “Now the program is available to a much
larger number of farmers that regularly utilize no-till and conservation
tillage practices on their cropland. Pasture and harvestable hay acres
are eligible as well.”
Barlow said
approximately 10,000 acres have been enrolled in the program so far, but
expects the addition of eligible counties will boost program
participation. KyCGA and KySGGA are also working with the Kentucky Farm
Bureau so that the state’s largest farm organization may offer program
participation as a member service.
“We want this
program to be available to the most number of farmers, foresters and
land managers possible,” said Barlow. “In the wake of a changing
climate, we feel our farmers can participate in environmentally-friendly
practices and capitalize from the need for greenhouse gas
sequestration.”
KyCGA and KySGGA
were recently approved to enroll acres into forested offset projects in
addition to crop and grass land. Forestation and forest enrichment
projects initiated on or after January 1, 1990 on unforested or degraded
forest land are eligible. The current contract period for forested
offsets is from 2003 through 2010. Barlow said enrollees should be able
to earn income for years 2003-2006 so long as contract specifications
can be verified for those years.
The contract period
for conservation tillage and pasture/hay acreage is from 2006-2010.
Barlow said farmers can earn 2006 income if they apply before the March
31st deadline.
Conservation tillage
is defined by the CCX as continuous no-till, ridge-till or strip-till
and the same enrolled acres must remain in the conservation tillage
practice the entire 5-year contract period. Grasslands such as pasture
and hay acres seeded after January 1, 1999 may also be enrolled in the
program. According to CCX, grassland acres earn more per acre than
conservation-tilled crop acres.
“Based on current
CCX trading prices, a land manager enrolling one thousand continuous
no-till acres could earn about $10,000 on conservation till and $13,000
on grassland for the 2006-2010 term commitment,” noted Barlow. “Farmers
should keep in mind, however, that the soil offset market is volatile
and final income could be higher or lower than this figure.”
According to the CCX
Web site (www.chicagoclimateexchange.com),
Exchange Soil Offsets (XSOs) are currently trading for $3.80 per metric
ton of CO2 per year. Land in continuous conservation tillage
practices will earn at a rate of 0.6 metric tons CO2 per acre
per year. This rate was recently increased from 0.5 metric tons CO2 per
acre per year. Grassland earns at a rate of 0.75 metric tons CO2
per acre per year. The KyCGA/KySGGA retains 5 percent for administrative
fees, and CCX retains $0.20 per traded ton of CO2. An
additional 20 percent of the enrolled acres are held in a reserve pool
for catastrophic events and project non-compliance. Remaining acres will
be traded at the end of the contract period.
“There is a new
market in agriculture,” said Barlow, “and we are bringing it to Kentucky
farmers. We are extremely excited to provide this additional income
opportunity for our growers.”
Barlow said any land owner or manager interested in program
participation should visit the Kentucky program’s Web site at
www.kycarbon.com or call him at 800-326-0906.
The Kentucky Corn Growers Association and Kentucky Small Grain Growers
Association are trade organizations dedicated to improving the
profitability of grain farmers in the Commonwealth.
The Chicago Climate Exchange is a voluntary greenhouse gas (GHG)
emissions trading program targeting emissions and offsets in North
America and across the globe.
###
Contacts:
Todd Barlow, KyCGA/KySGGA Executive Director, 502-243-4150 or
barl6145@bellsouth.net.
Jennifer Elwell, KyCGA/KySGGA Communications, 502-921-2625 or
info@kycorn.org.
