Carbon Credits in Agricultural Operations

 

Mario Villarino, County Extension Agent- Hopkins

 

Efforts to reduce global warming are open­ing up new opportunities for income for Texas farmers and ranchers.  In the past few years, many governments worldwide have begun trying to halt climate changes by limiting the amount of greenhouse gases (GHGs) that can be emitted by industry. To comply with these laws, large emitters such as power plants are allowed to either alter their own operations or pay others to reduce emis­sions. Often it is less expensive for large emit­ters to pay others than to retrofit their opera­tions to reduce emissions. Agricultural operations can usually reduce emissions more cheaply than can large emitters such as power plants. In Texas, some farmers and ranchers can reduce carbon emissions by reducing stocking rates or changing from con­ventional to reduced or no tillage production. Those producers could sell carbon credits to large companies needing to reduce emissions. The earnings that Texas producers could expect under 2009 market conditions range from $1 to $5 per acre per year; that amount could rise or fall depending on whether the U.S. govern­ment mandates the reduction of emissions. Agriculture producers considering entering the carbon market need to know:

• The origins of the carbon market
• Participants in that market
• Types of projects that agriculturists can undertake
• Status of the U.S. market
• Steps and requirements to participate in
• The carbon credits marketplace
• Potential cash flows for cropland and
• Rangeland management offset projects
• Producers who understand these factors will be better able to determine whether, when, and how to augment their income by selling carbon offsets.

Agricultural producers interested in more information on carbon credits can contact the Hopkins County Extension Office at 903-885-3443.

 

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