Carbon credits are a way for farmers and ranchers to get paid for reducing their greenhouse gas emissions by changing production practices or implementing new practices that lead to more carbon storage on their land. These credits are sold to corporations seeking to offset their own emissions and can be worth between $10 and $15 per ton of carbon stored. However, getting involved in carbon credit markets requires careful consideration and legal review, as contracts can be complex and vary by company. It is important to understand what practices are required for payment, how payments are calculated, and what costs are deducted from the proceeds. Additionally, it is crucial to work with a reputable ag carbon company and understand what happens if that company goes out of business. The lack of information and transparency in this emerging market can be frustrating, but recent legislation aims to provide more oversight and transparency in the future. The US Department of Agriculture is preparing a study of ag carbon credit markets, and the United Nations is working to develop an international trading system. For now, farmers and ranchers looking to participate in carbon credit markets should consult with legal counsel and do their due diligence before signing any contracts.
It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...