Fax: 402-476-8859, Cell: 402-580-8815

john@nebraskafarmersunion.org

FOR IMMEDIATE RELEASE

April 2, 2008 Lincoln, Nebraska

Record High Carbon Markets Means Bigger Carbon Credits Checks For Farmers And Ranchers

LINCOLN, NE – The value of sequestered carbon on the Chicago Climate Exchange (CCX) has risen to record highs. The value of a metric ton of carbon credits is currently trading at $5.85, as compared to under $2.00 three months ago. Nebraska Farmers Union (NEFU) markets the Carbon Credit Program, under CCX guidelines, as a good way to reward Nebraska farmers and ranchers for using good conservation practices that store carbon in the soil.

The 2008 crop year sign up deadline for no-till row crop acres or seeded grasses and legumes is August 15, 2008. New program enrollees with applications completed by the August 15^th deadline have the opportunity to use the special “reach back” provision that allows them to receive an additional payment for the 2007 crop year.

For ranchers that have rotational grazing schedules on native grasslands, online applications for the Fall 2008 pool will be taken until August 1, 2008. Carbon credits for the Rangeland Management Program may be accessed back to 2003 with the submission of adequate rotational grazing schedules. Drought stricken or overgrazed areas across Nebraska may qualify as degraded rangeland which could potentially yield higher priced credits.

Graham Christensen, NEFU Public Affairs Director, says the booming carbon markets seem to be the result of foreseeable changes in the United States’ approach to climate change. “The United States is the only major industrialized nation not to abide by the Kyoto Protocol, which is the global climate treaty. As a result, carbon emissions are not capped in the United States, but are in Europe. The value of carbon in Europe’s Climate Exchange is $35.17 per metric ton in U.S. dollars, which is six times the value of U.S. carbon,” Christensen said. “All three major presidential candidates; Obama, Clinton, and McCain support a ‘Cap and Trade’ system with mandated caps on carbon emissions from entities that contribute greenhouse gases into the atmosphere. It appears to us the recent increase in market prices for carbon in U.S. markets reflects the anticipation of some sort of national cap and trade system to limit carbon emissions. The gap in carbon values between the U.S. and European carbon markets will likely narrow as the U.S. moves towards some sort of “Cap and Trade” system, which will increase the value of the carbon farmers and ranchers sequester,” Christensen said.

All enrollments for the NEFU sponsored Carbon Credit Program are done through an online application process. Enrollment help is available for farmers and ranchers by contacting the Nebraska Farmers Union office at 402-476-8815 or from any National Farmers Union Insurance agent. In addition to the No-Till/Seeded Grasses and Legumes and Rangeland Management Programs, carbon credits are also available for trees planted after January 1, 1990 and for capturing methane from digesters.

Carbon Credits are intended for farm and ranch operators, not landlords. Payments for storing carbon are usually made in June or July of the following year after the enrollment pool of carbon is marketed.

NEFU President John Hansen announced that NEFU currently has about 350,000 acres enrolled in the Carbon Credit Program. “We encourage all eligible farmers and ranchers to get signed up this spring before the crunch of summer work hits. The value of your stored carbon is going up. The entire state of Nebraska is now eligible for carbon sequestration practices. Approved rates were also adjusted upwards. Now is a great time to get enrolled,” Hansen said. “If you are already eligible, why would you leave dollars on the table and not sign up?” Hansen concluded.

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