Скачать или смотреть Carbon Markets 101: Agricultural Carbon Credit Contracts and Data Questions

Agricultural carbon markets provide an opportunity for farmers to receive payments for adopting new practices, but farmers have many questions about these programs. We will discuss some questions farmers should ask about carbon credits, specifically questions farmers should ask related to data and agricultural carbon contracts.

The first question: how do I enter the carbon market?
There are typically two approaches a farmer can use for entering the carbon market, an aggregator or a data manager. With an aggregator, the farmer sells the entire project, control, and credits to the aggregator in terms and conditions set up in a contract. The aggregator then has complete control over carbon credits, when to sell, the price, and data shared.
With a data manager, the farmer pays a data manager to help them enter the marketplace for a fee or revenue percentage. The farmer has not sold real interests in the projects or carbon credits
What practices are companies paying for? Typically we see payments for reducing tillage, changing nitrogen rate or practices, planting cover crops, and changing crop rotation for crop farmers. There also may be opportunities in the future for payments for livestock producers and forestry management.
Another question to consider is how long am I locked into a contract for? Carbon contracts typically last for a number of years because it takes time to store carbon in the soil and make sure it remains there. Typically you see contracts between 10 and 20 years, but we all know many things can change within that time period. It is important to clearly understand any penalties for violating the contract and any liabilities the farmer has if the land changes hands.

A big question to ask is about ownership of data and how the data can be shared. It is important to get a clear answer from the company about who owns your data, what can be done with your data, and how your data can be used or sold.
Who needs to be involved in the decision? Some companies require an attestation of right to sell carbon, and others have a box that says “check here if you have received your landlord’s permission” so there is a lot of variation in the contracts
Another question to consider is what happens if the land changes hands? Companies are typically building in “buffer pools” by purchasing more carbon credits than they are selling as a way to manage risk with the expectation that some farmers may drop out of the program. Some companies state they will deal with these situations of land changing hands on a case-by-case basis. The outcome for the farmer depends on the company and what is in the contract.
How often will someone need to verify my information? Technologies for measuring soil carbon may include soil sampling, remote sensing, and modeling. Someone may need to visit the farm to collect soil samples or verify information, so it is important to get a clear answer on how often this will need to occur.
Data management is an important part of agricultural carbon contracts, and it is important for the farmer to have a clear understanding of the data requirements before entering a carbon contract.