“The Green Movement”

Agriculture’s Carbon Opportunity

Carbon Credits Conference

9:00 AM – 3:30 PM ~ Thursday, August 2, 2007

C.A. Vines Arkansas 4-H Center, Ferndale, Arkansas

This conference is designed to help landowners, foresters, farmers and others understand how they can benefit from carbon credits.  This conference will bring together all aspects of carbon trading including:

• Chicago Climate Exchange
  • To explain how the carbon market operates
  • To explain what agriculture products are eligible for credits
• Carbon verifiers from the Illinois Conservation Districts
  • Discuss carbon verification process
  • Discuss cost associated with verification
• All of the Carbon Aggregators working in Arkansas
  • Delta Institute
  • Dogwood
  • Iowa Farm Bureau

This conference is presented by: Arkansas Farm Bureau, University of Arkansas Extension Service, Arkansas Conservation Districts, Arkansas Forestry Commission, Arkansas Forestry Association, USDA/NCRS, Reynolds Forestry, and other partners

Arkansas Carbon Credit Conference

Registration Form

Conference Pricing:

$30 Early registration

Early registration ends Tuesday July 24^th.

After July 24^th registration will be $40

(Space permitting participants can register at the door; however only cash will be accepted)

Please print carefully

Please enclose full payment payable to: Arkansas Farm Bureau

ARKANSAS CARBON CREDITS CONFERENCE

AGENDA

8:00     A.M.    Registration

9:00     A.M.    Introduction: How Carbon credits can benefit Arkansas

                                    DICK BELL, ARKANSAS SECRETARY OF AGRICULTURE

9:15     A.M.    What is a Carbon credit and how are they traded

                                    NATHAN CLARK, Director, Emission Offset Projects

                                                                     CHICAGO CLIMATE EXCHANGE (CCX)

9:45     A.M.    what soil practices are eligible for credits

                                    NATHAN CLARK, Director, Emission Offset Projects

                                                                     CHICAGO CLIMATE EXCHANGE (CCX)

10:00   A.M.    what Forestry practices are eligible for credits

                                    NATHAN CLARK, Director, Emission Offset Projects

                                                                     CHICAGO CLIMATE EXCHANGE (CCX)

10:30   A.M.    BREAK

10:45   A.M.    Real world experiences with carbon credits

                                    , International Paper

                                    KATHEY WEBB, ARKANSAS LEGISLATURE

11:20   A.M.    What is the process for verifying carbon Credits

                                    THOMAS

                                    ILLINOIS ASSOCIATION OF CONSERVATION DISTRICTS

11:45   A.M.    LUNCH

1:00     P.M.    Purpose of an Aggregator

                                    , Arkansas Forestry Commission

1:15     P.M.    Presentations from Aggregators

                                    DELTA INSTITUTE

                                                ABBY CORSO

                                    IOWA FARM BUREAU

                                                DAVE MILER

                                    DOGWOOD

                                                JAKE DAVIS

2:00     P.M.    QUESTION AND ANSWER PANEL OF ALL PRESENTERS AND

                        Government Agencies

3:20     P.M.    CLOSING REMARKS

                                    GEORGE RHEINHARDT,

                                    USDA – NATURAL RESOURCE CONSERVATION SERVICE

3:30     P.M.    DISMISS

Morning Moderator: Randy Veach Arkansas Farm Bureau

Afternoon Moderator: Tom Riley, U of A Extension Service

What is a Carbon Credit?

A carbon credit is a measure of the amount of carbon sequestered or “held” in the soil through various conservation and planting techniques: for example, “no-till” conservation methods and planting trees sequester carbon, which can be traded. 

Who trades Carbon credits?

In North America, carbon credits are traded at the Chicago Climate Exchange (CCX).  The CCX is comprised of many large corporations, who upon joining voluntarily agree to reduce their emissions 6 percent below a 1998-2001 baseline period by 2010.  While joining the exchange is voluntary; the agreement is legally binding.  Under the agreement, half of the reduction must come from emission reducing technologies, while the other half can be purchased from the CCX. 

How can Carbon Credits benefit farmers?

·       Carbon Credits provide a new income source for landowners

·       Rewards sustainable forest management

o      CRP and other conservation lands are eligible for the program

o      Credits vary by tree species

·       Rewards sustainable farming

o      Credits of up to 0.6 metric tons of carbon per acre per year for enrolled no-till acres

o      Minimum four year contractual commitment is required from farmers to practice continuous no-till on enrolled acreage

·       Credits are trading between $3.50 - $4.00 per ton currently

o      At these prices carbon on a no till operation is worth between $2 and $2.50 an acre

o      At these prices carbon on a 10 year pine stand is worth between $25 and $30 an acre

o      For forestry payments are retroactive back to 2003

Where does the CCX purchase carbon credits?

The CCX primarily purchases carbon credits from aggregators through three main carbon offset programs:

Methane destruction

·       Initiating and operating landfill methane collection and destruction

·       Farmers initiate methane collection and destruction systems at livestock operations

·       Municipal waste water treatment plants anaerobic digestion co-ethanol facilities

Agricultural practices:

·       Farmers commit land to continuous no-till or strip-till cropping

·       Farmers initiate grass cover planting in specified states, counties, and parishes in the U.S.

Forestry practices:

·       Farmers initiate forestation and forest enrichment projects

·       Forest projects initiated after January 1, 1990 on non forested land

·       CCX is working to initiate a working forest initative

What is an aggregator?

An aggregator is an individual or company approved to trade credits on the CCX.  Landowners go through an aggregator to sell their sequestered carbon on the exchange.  The primary difference between aggregators is the commission they charge.  All aggregators are charged 15 cents per trade by the CCX to register and facilitate the trade.  There are three main aggregators operating in Arkansas: Iowa Farm Bureau, Delta Institute, and Dogwood.  Once you sign with an aggregator, they may send someone out to verify the land is eligible for the carbon offset program.

What is a carbon verifier?

Verifiers are independent contractors who are hired by the aggregators to verify farming practices on land under a carbon contract.  Around 10 percent of an aggregator portfolio must be verified every year; however large projects must be classified every year.

Driving Directions

Arkansas 4-H Center

DIRECTIONS:
From I-430:
After crossing the Arkansas River from the NORTH, take the first exit - Cantrell/Highway 10 - and travel to the right. Follow Highway 10 west for approximately 8.5 miles.  Look for a sign. Turn left onto Ferndale Cutoff (West Pulaski Fire Department will be on the right). Follow Ferndale Cutoff  5 miles to the 4-Way stop in Ferndale.  Look for a sign.  Continue straight through the 4-Way stop on Ferndale Cutoff for 1.1 miles. The 4-H Center will be on the right. From SOUTH 1-430, take the Shackleford exit and loop around to get on I-630. See instructions below.

From I-630:
Stay on I-630 west until the Interstate ends at the stoplight and intersection of Shackleford Road. Continue through the light. This will be Financial Center Parkway and will turn into Chenal Parkway. Travel approximately 2.5 miles on Chenal Parkway. Do not turn at the light just before Kroger.   Pass the Kroger store on the left and the Shell station on the right.  Immediately after the Shell station, be ready to turn left on Kanis Road.  On Kanis travel another 1.4 miles and bear left at the "Y".  Watch for signs.  After 5.4 miles there will be a 4-Way stop in Ferndale.  Turn left onto Ferndale Cutoff and travel another 1.1 miles and turn right into the 4-H Center.

From I-30:
Exit on Congo Road in Benton.  Follow signs to Congo North across I-30. Turn left at the “T” stop sign in Salem. Take a right at the "Y" of Mulberry Road and Congo Road.  Watch for signs. Keep to the right at the next "Y" at Steel Bridge Road and Congo Road. The road changes names but do not turn until you get to the 4-H Center, which will be on the left. Total distance from I-30 is 17 miles.