More than 70 Farm Bureau members from Branch, Calhoun, Hillsdale, Jackson and Lenawee counties recently gathered for the inaugural District 2 Energy and Carbon Markets Conference at Hillsdale College.
“This conference was developed by our local leaders and is an excellent example of our members’ grassroots ability to take an idea, develop a plan to provide information and access to resources members want and need, and deliver it,” said Jennifer Lewis, District 2 Director on the Michigan Farm Bureau Board. “Additionally, I think the conference will feed into policy development discussions happening now and leading up to our state annual meeting later this year.”
While the farm and agribusiness communities are abuzz with news on carbon markets and renewable energy progress — and seemingly ready to engage personally and as a collective voice for agriculture — it seems more questions remain than answers; more reason for Farm Bureau members to continue unearthing information and formulating their opinions and recommendations.
Related: Michigan Farm News climate and sustainability market stories
Brandon Hotchkin, Jackson County Farm Bureau member and ProFILE leader, shared that sentiment saying that one of his biggest takeaways from the conference is that carbon market discussions are in their infancy.
“I don’t believe these issues are ever going to go away, so it’s important to be on the forefront and for that reason I think the conference was really good,” Hotchkin said. “I also think some of these opportunities may not be as lucrative as they sound. Whichever decisions landowners and farmers make, something to keep in mind is how they will impact your family, neighbors and community 10, 20 or 30 years down the road.”
Similarly, Hillsdale County Farm Bureau member Stuart Welden appreciated the speakers’ candor in recognizing the carbon market is under development.
“Every farmer or potential stakeholder should investigate the current options available to them and make informed decisions,” Welden said.
Knowing Farm Bureau members would be eager to continue their research, speakers like American Farm Bureau Federation (AFBF) Economist Shelby Myers directed members to additional resources.
Myers prefaced her presentation by saying that while AFBF is considered an informational leader on carbon markets, that information available is changing quickly, still under development and often proprietary.
Providing background, she explained that carbon markets are voluntary, incentive-based national markets designed to sell agriculture ecosystem asset credits.
“They are connecting buyers and sellers on a single platform so that you — the sellers, as growers — have the ability to sequester carbon…and turn it into credits that all of these other companies, who are buyers, are looking to purchase to offset any emissions they can’t streamline through their supply chains,” Myers said. “Everyone is worried now about their green balance sheet… That’s when you hear those net-zero commitments.”
She emphasized that farmers wanting to earn money selling credits will be required to opt into data monitoring and measurement: “You will have to open your books; to what degree will depend on what kind of contract you sign.”
Myers continued, describing that credit payments are typically based on one of two methods.
“You can either have a pay-for-practice model, which is paying you to incentivize a certain practice, typically on a per-acre basis,” she said. “To be paid on outcomes you’re being paid on a per-metric-ton base (of carbon sequestered)… If they’re paying you on a credit, they’ve already done the conversion rate (on carbon sequestered).”
Regardless, Myers said all the practices must be certified, then the assets you’re generating must be quantified and verified by a third party.
With so many variables in play and a steep learning curve facing farmers looking to engage, Myers said a carbon contract study group has been created, made up of AFBF and state Farm Bureau staff, that has the expertise to say, “What are some commonalities across these (contracts) that are red flags, what are some commonalities that look good, and what are some things we can go back to the companies to say ‘if you can improve these pieces, you might get more interest from growers to sign up.”
As county Farm Bureaus continue to explore carbon markets and engage in related legislative and regulatory discussions, such as the Growing Climate Solutions Act, Michigan Farm Bureau encourages members to provide input through the organization’s policy development process. Members interested in learning more can read this emerging climate policy brief, review MFB and AFBF’s policy positions on climate, or submit new policy ideas of their own.
Share Story
Article Tags
