Are Carbon Offsets the New Cash Crop?

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It pays to cut greenhouse gas emissions, literally and members of the National Farmers Union Carbon Credit Program will vouch for that. The program gives agricultural producers the opportunity to earn carbon credits through carbon sequestration, that is, by adopting practices such as no-till farming, growing grass and reforestation that store carbon dioxide in the soil.

The National Farmers Union (NFU), on behalf of the producers sells carbon credits on the Chicago Climate Exchange (CCX), where they are purchased by exchange members looking to offset emissions. Currently the credits are being sold on the exchange at the rate of $4 per metric ton. The most active member state is North Dakota and last month 990 participants in the state received $2.6 million through the program.

The carbon sequestration program of the NFU, with its 2300 farmer-strong membership captured co2 from 2.8 mn acres in 2006 and 2007, which is equal in effect to capturing co2 emissions of 320,000 cars.