Wisconsin Ag Connection - Farmers Union Carbon Credit Program Distributes Checks

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Farmers Union Carbon Credit Program Distributes Checks
Wisconsin Ag Connection - 07/29/2008

Farmers and landowners enrolled in the Farmers Union Carbon Credit Program nationwide will receive payment from the program this week. According to the Wisconsin Farmers Union, state participants will receive their portion of the $5.8 million distributed nationwide for agreeing to capture and store carbon dioxide in their soil through no-till cropping and conversion of cropland to grassland. This does not include the sale of the forestry projects, which Farmers Union anticipates to occur before Fall 2008.

This pool of enrollments sequestered carbon dioxide from 2.8 million acres nationwide, using no-till cropping practices and by converting cropland to long-term grass stands, as in Conservation Reserve Program acres. After third-party verification of the enrolled acres, the tons were registered and sold on the Chicago Climate Exchange over the last several months. The amount of stored carbon dioxide offsets the estimated annual emissions of 320,000 automobiles.

The CCX's Agricultural Offsets Committee recently announced their decision to allow Farmers Union to allow retroactive credits to eligible participants in the seeded grass program back to 2003. Program administrators will begin working to enroll these credits after August 15.

"The Farmers Union Carbon Credit Program has continued to grow since its inception in 2006. Farmers enrolled in the program have received additional income, during a time when input costs are high, and have made a commitment to practice conservation methods over the next three to five years," said WFU President Sue Beitlich. "It's a win-win for everyone."

Farmers and landowners who have enrolled will continue to receive annual payments for the next three to five years based on the acres they have enrolled, the price of the offsets traded and the time before their contract expires. In addition to no-till and seeded grass offsets, credits can also be earned with tree planting projects and methane capture projects.

Wisconsin farmers and landowners interested in enrolling no-till and seeded grassland conservation projects in the Farmers Union Carbon Credit Program have until August 15 to meet the 2008 enrollment deadline. The program is entirely voluntary, but contracts are considered legally binding once signed.

The Farmers Union Carbon Credit Program, administered by North Dakota Farmers Union accepts applications on an on-going basis. However, to receive payment in 2009, qualified farmers and landowners must enroll by August 15. If eligible conservation methods were practiced in 2007 and 2008, landowners can receive payments for both 2007 and 2008. The deadline does not apply to forestry projects.

To learn more about the Farmers Union Carbon Credit Program, call 800-366-8331, ext. 154.

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