Program would give farmers ‘carbon credit’

By The Associated Press - 01/06/2007

BILLINGS (AP) — A Butte-based coalition is predicting farmers in Montana, Wyoming and Colorado are on their way to getting paid for conservation practices such as no-till farming that keep carbon dioxide in the ground Ted Dodge of the National Carbon Offset Coalition believes the Chicago Climate Exchange will soon allow farmers in the three states to bundle their ‘‘carbon credits’’ for sale. The private agency trades greenhouse gases and pollutants much like other exchanges trade commodities.

A spokesman for the Chicago Climate Exchange was out of the office Friday and did not immediately return a phone call seeking comment.

Supporters of the plan say it’s a way to reward farmers who want to help cut down on global warming.

The practice will set the stage for the day when the United States places a cap on carbon dioxide emissions and more corporations seek ways to buy credits to offset emissions, Dodge said.

‘‘We’re trying to get ahead of the curve,’’ he said. ‘‘We think it’s going to be the largest commodity market in the world when it takes off.’’

So far, about 20 Montana farmers have shown an interest in the program, Dodge said.

Most are wheat farmers who already are planting crops without tilling the soil, which can be more labor-intensive and sometimes involves cutting slots in the field and dropping in seeds.

‘‘Many of them are doing this from a conservation standpoint, but now there’s an opportunity for some remuneration for it,’’ said Jane Holzer, director of the Montana Salinity Control Program in Conrad, who has been helping farmers sign up for carbon trading.

Obstacles include relatively low and fluctuating prices, and the fact that describing exactly what a carbon credit is — a unit equal to 1 metric ton of carbon — can seem a little abstract.

Holzer estimated that, under current prices, a farmer could get $250 to $350 a year for 100 acres that meet carbon sequestration standards.

‘‘It’s not big money, but it’s $250 you didn’t have if you didn’t sign up,’’ Holzer said.

More than 200 corporations, cities and other entities buy carbon credits at Chicago Climate Exchange, which has been operating since 2003. Most use the credits to offset emissions in countries operating under the Kyoto Protocol, which set mandatory limits on carbon dioxide.

Dodge and the Butte-based coalition, which is made up of seven Montana non-profits, are organizing interested farmers and hoping to aggregate their carbon credits and sell them in bulk.