By Todd Janzen
Janzen Ag Law
At a farmer meeting I attended recently, the hot topic was carbon reduction contracts. There was a lot of curiosity, confusion and skepticism among these farmers. Many questioned how the various offerings on the market work, whether these tools make financial sense, and whether farmers are better off holding out for more lucrative, future possibilities. Many questions involved questions about how "carbon credits" work. This post will explain more about carbon credits, who generates, verifies, and sells.
What is a "carbon credit"? The term generally means the reduction of a quantifiable amount of carbon dioxide (CO2) or its equivalent from the atmosphere. A metric ton is the most commonly used measure. A metric ton is 1000 kilograms or 2,205 lbs. To put that into perspective, that is the approximate weight of two 5 feet x 5 feet round bales of hay.