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Nebraska Farmers Union |
1305
Plum Street • Lincoln, NE 68502 Contact
John Hansen Office: 402-476-8815, Fax: 402-476-8859, Cell: 402-580-8815 |
Nebraska Farmers Union Launches New Carbon Credit Program
For
Immediate Release
October 18, 2006
Lincoln,
NE. The Nebraska Farmers Union
announced today that it is launching a new carbon credit program through the
National Farmers Union that has been approved by the Chicago Climate Exchange
to enroll agriculture producers’ acres into blocks of credits that will be
traded similarly to other agricultural commodities. Farmers Union will serve as a carbon aggregator so that
individual farmers will be able to group their carbon in large enough
quantities to be traded and marketed on the Exchange one year at a time.
Carbon
dioxide released into the atmosphere is one of six greenhouse gases that trap
heat in the atmosphere, producing an increase in the temperature and global
warming. Large companies and other
entities that are releasing carbon dioxide into the atmosphere can buy credits
of carbon being stored in the soil through the Exchange. Once the credits are aggregated and sold,
producers earn income based on their enrolled acres.
Farmers
Union’s new carbon program offers Nebraska farmers and ranchers an in-state
source for enrolling eligible cropland or grassland acres into an agreement to
store carbon in their soils in exchange for carbon payments. New eligible producers can receive payments
for both the 2005 and 2006 crop years if they enroll before the
fast-approaching November 3 deadline.
“Because
of the November 3rd deadline, we have been working night and day to
get this program up and running as soon as humanly possible so that Nebraska
producers will have this last opportunity to “reach back” and pick up crop year
2005 carbon credits,” Hansen said. “We
will sponsor public information meetings for farmers on carbon credit after
harvest and before spring planting.”
Enrollment
will be done through the Internet at www.nebraskafarmersunion.org or
www.nfu.org. The websites furnish producers with eligibility guidelines,
frequently asked questions, an income estimator, toll-free telephone numbers,
and the relatively simple enrollment forms.
For additional information or help in applying, producers are encouraged
to contact their local Farmers Union insurance agents.
“No-till
is a fast-growing conservation practice that provides many benefits to
producers who farm with this method,” said Steve Chick, State Conservationist
with the NRCS. “They can reduce their
machinery costs, reduce time planting a crop, reduce fuel usage, improve the
organic matter in soil and now receive extra income for what their doing. Why wouldn’t you enroll?” he asked.
“We
are really excited about the upside potential of this new program. This is good for the environment and good
for Nebraska producers. This program
compensates producers for farming practices they are already using. Many additional producers can become
eligible with relatively minor changes in their tillage operations in the
future because they are already doing some no-till today. We believe the value of carbon credits will
continue to grow as cap and trade regulations are implemented to deal with global
warming,” said John Hansen, Nebraska Farmers Union President.
Nebraska
Governor Dave Heineman welcomed the addition of Nebraska Farmers Union as a
carbon aggregator and marketer.
Gov.
Heineman said, “Nebraska producers have always been good stewards of the land,
and this carbon credit program is a new way to help provide incentives to the
Nebraska producers who protect our soil and water resources for future
generations. Nebraska is a national
leader in support of soil and water conservation, including no-till
farming. We are fast becoming a
national leader in carbon sequestration.
We appreciate the efforts of the Farmers Union.”
Nebraska
is a national leader with more than 460 carbon credit contracts on nearly
300,000 acres. Nearly 277,000 of these
acres are cropland farmed with a no-till system. Partial county survey of 46 Nebraska counties by Natural
Resources Conservation Service and Cooperative Extension in 2006 report a 12
percent increase in corn no-till planted into soybean stubble, and a 13%
increase of soybeans no-till planted into corn stubble. Several Extension
offices have been assisting producers enroll acres through other entities.
Nebraska's
Senator Ben Nelson said, "This carbon credit program is a win-win-win for
Nebraska agriculture producers, our environment, and our land and water
resources. Nebraska producers have an economic interest in preserving and
protecting our soil and water resources and we lead the nation in innovative
ways to do it. The Farmers Union is living up to its commitment to promote and
preserve agriculture by sponsoring this new emerging marketplace financial
incentive to help support family farmers and ranchers while protecting our
natural resources."
In
addition to earning money for cropping practices such as no-till that leaves crop
residue on the soil surface through planting, producers can also be compensated
for establishing long-term grasslands, alfalfa, forestry and other
practices. These practices also help
store or “sequester” carbon and reduce carbon dioxide in the atmosphere.
The
Chicago Climate Exchange that sets the program guidelines and boundaries has
divided those counties eligible for participation in Nebraska into Zone A and
Zone B. All of Nebraska is eligible for
new forestry plantings that meet program guidelines.
The
51 counties currently eligible in Zone A that qualify for both conservation
tillage and establishment of grassland and alfalfa are:
Adams,
Antelope, Boone, Buffalo, Burt, Butler, Cass, Cedar, Clay, Colfax, Cuming,
Custer, Dakota, Dawson, Douglas, Dixon, Dodge, Fillmore, Gage, Greeley, Hall,
Hamilton, Howard, Jefferson, Johnson, Kearney, Lancaster, Madison, Merrick,
Nance, Nemaha, Nuckolls, Otoe, Pawnee, Phelps, Pierce, Platte, Polk,
Richardson, Saline, Sarpy, Saunders, Seward, Sherman, Stanton, Thayer,
Thurston, Valley, Washington, Wayne, and York.
The
16 counties in Zone B that qualify for establishment of grass and alfalfa
plantings only are:
Chase,
Cheyenne, Deuel, Dundy, Franklin, Frontier, Furnas, Gosper, Harlan, Hayes,
Hitchcok, Keith, Lincoln, Perkins, Red Willow, and Webster.
The
NFU Board of Directors authorized the expansion of the North Dakota Farmers
Union carbon credit program to include all the Farmers Union states in mid
September. NFU is the first national
farm organization aggregator of carbon.
North Dakota Farmers Union will administer the carbon credit program for
the Farmers Union states.
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