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Frequently Asked Questions (FAQs)
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AWT understands the Agricultural Soil Carbon Sequestration Offset program with Chicago Climate Exchange (CCX) can be confusing. We have constructed this question and answer segment in hopes to facilitate an awareness of how the program works. Whether you are a producer, aggregator, or a curious passer-by we hope the following information will be helpful. All questions have been answered according to the CCX protocol and interpretation of the program.
Questions:
Q: What is the Agricultural Soil Carbon Sequestration Offset program?
A: Grasses and crops have the ability to pull carbon dioxide from the atmosphere and store it in their biomass. When land is managed with specific practices, grasses and crops have the ability to store more CO2. The Agricultural Soil Carbon Sequestration Offset program allows farmers to enroll their rangeland, no-till land, and grassland so that they may earn offsets from their land practices. These earned offsets are referred to as carbon credits.
Q: What is rangeland?
A: All rangeland is defined according to the NRCS as:
“Land on which the historic plant community is principally native grasses, grasslike plants, forbs or shrubs suitable for grazing and browsing. In most cases, range supports native vegetation that is extensively managed through the control of livestock rather than by agronomy practices, such as fertilization, mowing, or irrigation. Rangeland also includes areas that have been seeded to introduced species (e.g., clover or crested wheatgrass) but are managed with the same methods as native range.”
Q: Can a producer receive carbon credits for Rangeland, No-Till, or Grassland if they change land practices before the end of their contract?
A: No. The producer should be aware that once they have enrolled their acres as rangeland it is to remain rangeland for the term of the contract. The same applies for no-till and grassland. If the producer breeches the contract then they will be responsible for paying back the amount of carbon credits they have received
Q: How are Rangeland, Grassland, and No-till projects verified?
A: Rangeland, grassland, and no-till projects are verified through the partnership of the aggregator, verifier, and producer. The aggregator educates the producer of the Carbon Offset program and enrolls the producer’s qualifying land with CCX (Chicago Climate Exchange). The producer provides documentation that proves their ownership and land practices that capture CO2 (carbon sequestration). The verifier acts as the third party between the aggregator and the producer to ensure all of the documentation provided by the producer meets CCX guidelines. The verifier performs site visits to verify land practices and creates a report that is submitted to CCX and the aggregator that is used as a basis for issuing carbon credits.
Q: Does my Grassland qualify for carbon credits?
A: Grassland will qualify if it was previously tilled cropland converted to grassland on or after January 1, 1999. Grassland will qualify if it is less than 50% alfalfa. The grassland must be a strong stand with little bare ground. Any situation that prevents the establishment and maintenance of a permanent grass stand will not qualify as grassland.
Q: Does my rangeland qualify for carbon credits?
A: A producer’s rangeland will qualify if they meet specific land practice and documentation requirements.
- Land practice requirements are met if the rangeland is not cropped, fertilized, mowed, tilled or irrigated. The vegetation contained within the rangeland can be both introduced and native grasses. The land must participate in some type of rotational grazing or sustainable grazing management practice.
- Record requirements are met if:
- the producer has a formal grazing plan that includes stocking rates, seasonal use, rotational grazing, and drought mitigation for each year they are trying to receive credit.
- the rancher is seeking previously degraded credit, supply all supporting documentation (must be third party documentation). The previously degraded condition must be proven to have occurred since 1/1/99.
- the producer provides a copy of the contract between the rancher and the aggregator that clearly states the contract acres and whether the rancher is interested in earning credits for previous years.
- clear and high quality maps of the enrolled acres are available.
Q: Can previously degraded Rangeland qualify for carbon credits?
A: If a producer has land that has been deemed “previously degraded” then that land is eligible for carbon credits. In order to qualify, it must be proved that the land was degraded as January 1,1999. Degraded status can be proven by photographs or reports by a third party like the NRCS, US Fish and Wildlife, grazing association, etc. The idea of receiving carbon credits from previously degraded land is that the land is improved from an unhealthy state to a healthy state in which the land is capable of holding more CO2.
Q: Do my no-till or conservation till practices qualify for carbon credits?
A: No-till or conservation tillage will qualify if the soil is left undisturbed from harvest to planting. Minimal soil disturbance is acceptable during planting as long as narrow seedbeds or slots are created by disk openers. The application of manure is acceptable as long as it is injected. Ineligible implements include, but are not limited to: field cultivators, tandem disk, offset disk, chisel plow, moldboard plow.
Q: What is grassland conversion?
A: Grassland conversion is the transformation of previously tilled cropland into grassland.
Q: What is no-till?
No till or conservation tilling is a land practice in which the soil is left virtually undisturbed from harvest to planting. Conservation Tillage is as defined in the Natural Resources Conservation Service National Handbook of Conservation Practices. These definitions are: No-till/Strip-till - Managing the amount, orientation, and distribution of crop and other plant residue on the surface year-round while growing crops in narrow slots or tilled or residue-free strips in soil previously untilled by full width inversion implement.
Q: What if there is a fire on land that is enrolled into the Agricultural Soil Carbon Sequestration Offset program with CCX? Will the producer be required to repay those credits?
A: As long as the producer maintains the land as it was originally enrolled then the producer remains in compliance of the terms of the contract.
Q: What is the role of a verifier?
A: The verifier is to act as the third party between aggregator and producer to ensure all guidelines and rules set by the Chicago Climate Exchange are met. This includes a desk audit of required records, possible site visit, and completing a final report that is submitted to the CCX.
Q: What is the role of an aggregator?
A: The aggregator is responsible for enrolling producers in the Agricultural Soil Carbon Sequestration Offset program with CCX through a pool, act as support for the producer through the carbon credit program, and provide all necessary information to the verifier.
Q: How are projects selected for a site visit?
A: Projects are considered for a site visit based on the pool enrollment. Grassland and conservation tillage projects require a site visit for a minimum of 10% of the contracts within the pool each year, which should be minimum of 10% of the enrolled acres. Rangeland projects require a site visit for 10% of the enrolled acres within the pool for rangeland contracts less than 10,000 acres and for every ranch that exceeds 10,000 acres. Subsequent (year 2 and onward) verifications are required for 25% of the contracts and 10% of the acres (regardless of size) within the pool.
Q: Does CRP land qualify for carbon credits?
A: CRP can qualify as grassland as long as it was planted on or after January 1, 1999. CRP land that has been converted from cropland prior to January 1, 1999 can qualify as no-till.
Q: Can a producer receive carbon credits for State Land or BLM land?
A: A producer can only receive carbon credits for land that they own or lease. However, a producer cannot receive credit for State Land or BLM land.
Q: What records are required for Rangeland offsets?
A: The following records are required for rangeland offsets.
- Record requirements are met if the producer has a formal grazing plan that includes stocking rates, seasonal use, rotational grazing, and drought mitigation for each year they are trying to receive credit. A producer may enroll in the program without a formal grazing plan only if they agree to develop one within a year of enrollment.
- The producer must supply documentation to verify ownership. Proof of ownership can be provided in the form of 578 forms (obtained from the local FSA office), tax records, or deed.
- Provide information that specifically state whether the rancher is seeking previously degraded credit. If the rancher is seeking previously degraded credit, supply all supporting documentation (must be third party documentation). The previously degraded condition must be proven to have occurred since 1/1/99.
- Provide a copy of the contract between the rancher and the aggregator that clearly states the contract acres and whether the rancher is interested in earning credits for previous.
- Acres that are enrolled in the Agricultural Soil Carbon Sequestration Offset program must be illustrated on a map. The map must be clear and of high quality. If GIS shapefiles of the ranch are available, these offer the highest degree of accuracy.
- If the rancher is looking to receive retroactive credits, the following must be provided
- 3rd party monitoring reports from previous years (2003-2008) or
- Yearly pictures of rangeland or
- Ranch grazing records to include Turn In/Out dates by pasture, indication of light to moderate stocking rates (forage balance calculations) for each year from 2003-2008
Q: Are No-till, Grassland, and Rangeland projects eligible for retro-active credits?
A: The deadline for obtaining retro- active credits was February 1, 2009. If a producer was able to enroll in the Agricultural Soil Carbon Sequestration Offset program before the deadline then they are eligible for retro-active credit 5 years previous. After February 1, 2009 producers will be eligible for retro-active credits 1 year previous. The following documentation must be provided in order to qualify for retro-active credits:
- 3rd party monitoring reports from previous years (2003-2008 if enrolled before February 1, 2009) or 3rd party monitoring reports from one year previous of enrolment (if enrolled after Feb 1, 2009) or
- Yearly pictures of rangeland or
- Ranch grazing records to include Turn In/Out dates by pasture, indication of light to moderate stocking rates (forage balance calculations) for each year from 2003-2008 if enrolled before February 1, 2009 or from one year previous of enrolment if enrolled after Feb 1, 2009
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