Growing Returns

Selected tag(s): cap and trade

New project guarantees payment for growers who implement conservation measures

Arkansas rice farmers participating in agricultural carbon markets.

Arkansas rice farmers participating in agricultural carbon markets. Credit: Adam Jahiel

Early adopters of innovative land-based conservation measures are rarely given an adequate reward for participating in agricultural carbon markets. But that’s all about to change, thanks to a nearly $1.2 million USDA Natural Resources Conservation Service Conservation Innovation Grant (CIG) that will leverage private capital investment into agricultural carbon offset practices and ensure that producers are paid for their efforts.

These efforts will guarantee the sale of at least 100,000 tons of credits over the next three years. Here’s how it will work. Read More »

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Why investments in agricultural carbon markets make good business sense

Farmers shaking handsOver the past decade, private investment in conservation has more than doubled, with sustainable forestry and agriculture investments as the main drivers of growth. This unprecedented expansion in “impact investing” or “conservation finance” has occurred as investors seek good returns that can also benefit the environment.  According to Credit Suisse, sustainable agriculture is particularly appealing to investors as it offers a wider array of risk mitigation approaches than sectors such as energy and transportation.

Yet despite this boom, there has been very little investment from private capital in emerging ecosystems markets, especially in the agricultural sector.

We’ve blogged before about the benefits growers – and the environment – realize from participating in agricultural carbon markets or habitat exchanges. But here’s why the private sector, food companies and retailers should invest in agricultural carbon markets. Read More »

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Agricultural carbon markets get yet another boost

farmIn the past three months, three new revenue opportunities have emerged for growers. In June, the first ever carbon offset protocol for crop-base agriculture in a cap-and-trade market was approved for U.S. rice growers by the California Air Resources Board (ARB). The “rice protocol” announcement was followed shortly after by approval of a voluntary grasslands protocol, which rewards farmers for avoiding the conversion of grasslands to cropland.

And now, USDA has demonstrated its interest in and support of another market-based approach for growers: increasing fertilizer use efficiency. Thanks to a new grant from the U.S. Department of Agriculture (USDA), EDF and partners will be helping almond and corn farmers reduce fertilizer runoff and nitrous oxide emissions, and earn greenhouse gas credits that can generate revenue.

Here’s what this project will entail: Read More »

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Grasslands protocol opens another carbon market for farmers

GrasslandsGrowers with grasslands on their property have a new reason to leave that land untouched.

On July 22, the Climate Action Reserve, a non-profit organization that creates offset standards and serves as one of the offset registries for California’s cap-and-trade program, approved a new protocol that rewards farmers for avoiding the conversion of grasslands to cropland.

The new “grasslands protocol” highlights a growing trend in agriculture: farmers being paid for reducing greenhouse gas emissions. Read More »

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It’s official! Rice farmers now eligible for carbon offset payments

Credit: Brian Baer Photography

The door is officially open for crop-based farmers to participate in carbon markets and earn new sources of revenue. The California Air Resources Board (ARB) just approved a new protocol for rice growers, representing the first ever carbon offset protocol for crop-base agriculture in a compliance market.

This means rice growers who implement conservation practices to reduce methane emissions can create and sell a greenhouse gas credit, commonly referred to as a “carbon credit.” Regulated California companies needing to reduce their emissions under California’s cap-and-trade program can now buy rice growers’ carbon credits.

The rice protocol milestone marks a new chapter for sustainable farming and shows the central role agriculture can play in solving the climate challenge.

ARB can now move forward in developing other agricultural offset protocols. The most interesting is a nutrient management protocol that would reward farmers who reduce nitrogen fertilizer losses to the air.

This “fertilizer protocol” has enormous potential for farmers and the environment – more than 400 million acres of cropland could be eligible for participation, and growers could contribute millions of tons of greenhouse gas reductions.

Here’s how the rice protocol works. Read More »

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California takes giant step toward approving first crop-based carbon standards

CA rice farmA significant milestone was achieved today in the California cap-and-trade market. For the first time, the California Air Resources Board (ARB) considered a land-based carbon offset protocol that will allow U.S. rice growers to earn additional revenue for reducing greenhouse gas emissions from cultivation.

This is a big deal. U.S. agriculture has tremendous potential to not only provide the nation with the food we eat, but also the climate solutions we need to sustain our growth.

Farmers grow carbon credits

The protocol covers rice cultivation practices in both the Sacramento Valley of California and the Mississippi River Valley, which encompasses Missouri, Arkansas, Mississippi and Louisiana. Growers here can implement any combination of three practices – dry seeding, early drainage or alternate wetting and drying – and collect data to be independently verified to create a carbon credit.

Nearly two dozen farmers have already expressed interest and are starting to gear up their operations to generate offsets in the spring of 2015. Read More »

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Five things to like about California’s proposed rice protocol

EDF's work on the rice protocol was featured in an article from The Fresno Bee: California Rice Farmers Could Get Pollution Credit. Photo credit: California Ag Today.

EDF's work on the rice protocol was featured in The Fresno Bee: California Rice Farmers Could Get Pollution Credit. Photo credit: California Ag Today.

The California Air Resources Board (ARB) has been developing the first crop-based protocol that will allow U.S. rice growers to participate in California’s cap-and-trade program. The final draft of the standards – a product of meticulous research and stakeholder input – is now out for review.

There’s a lot to like in the draft, which demonstrates the ARB’s diligence in developing a greenhouse gas reduction program that is good for both farmers and the wildlife that depend on rice fields for habitat. Here are my five highlights:

1) It creates a new revenue stream for farmers:  Rice farmers across the U.S. can volunteer to implement one of three methods included in the protocol – dry seeding, early drainage, or alternate wetting and drying – to reduce their greenhouse gas footprint. In doing so, they will be able to generate offsets to sell in California’s carbon market, providing revenue for growers while contributing to the state’s clean air goals.

Read More »

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