Carbon Credit Program

   Farmers Union’s Carbon Credit Program allows agriculture producers and landowners to earn income by storing carbon in their soil through no-till crop production, conversion of cropland to grass, sustainable management of native rangelands and tree plantings on previously non-forested or degraded land. In addition, the capture of methane from anaerobic manure digester systems can also earn carbon credits.

Farmers Union has earned approval from the Chicago Climate Exchange to aggregate carbon offsets (carbon credits) and sell them on behalf of producers. Farmers Union enrolls producer acreage into blocks of marketable offsets that are traded on the Exchange, much like other agricultural commodities are sold. Proceeds from the sales are then forwarded to producers as each pool of carbon credits is marketed. National Farmers Union’s Carbon Credit Program earned more than $2.5 million for producers in its first year of operation.

No-till crop production offsets are eligible in most central and eastern states. Seeded grass acres can be enrolled in most states and managed native rangeland offsets are offered mostly in central and western states. Maps are available on this Web site that show eligible states and counties. They are automatically programmed into the enrollment system and payment estimator. Forestry and agricultural methane projects also are available in every state.

Farmers Union is beginning a new enrollment period for no/till, seeded grass and rangeland acres. New contracts will run from 2008 through 2012. A bonus year of 2007 can be earned if the enrollment is completed by next summer’s deadline (date to be announced) and if the practice was started in 2007 or prior years. In specific cases, rangeland may be eligible for prior years’ credits as well.

The soils carbon offsets enrollments are done online only. Producers provide land descriptions or map designations for the land they enroll in the program. The entered information is then transferred directly into Farmers Union’s database. Producers then follow up by sending in FSA 578 forms that detail their cropland acres, pasture descriptions, grazing plans for range acres and current maps. Producers also remit a signed contract. It is necessary for producers to have a valid e-mail address, as well as a post office address, for communication and verification purposes. Forestry and agricultural methane offsets are also available, but only sample contracts and applications are available online. These individual projects will require producers or landowners to send in all materials by mail. Pooling, verification and marketing of carbon offsets will follow.