Carbon Marketing Provides Mississippi Tree Farmers with New Income Source
For more information contact:
Sirmon & Associates, 601-854-6631
Woodland owners who planted or naturally regenerated pine or hardwood stands on agricultural or pasture land since January 1, 1990 and in some cases other stands, can now receive extra income from managing and marketing Carbon Dioxide (CO2) sequestered in these forest stands. This is made possible through our association with the AgraGate Carbon Credits Corporation, according to Greg Sirmon, forester with Sirmon and Associates, Pelahatchie, MS.
“Greenhouse gas (GHG) mitigation is of increasing economical and environmental importance. The sequestering of CO2 in forest plantations and other woodlands is the primary way in chich the air we breathe is purified. Companies who routinely emit GHGs into the atmosphere are now recognizing that tree farmers are providing filtering systems for the atmosphere and are willing to compensate those who own woodlands,” Sirmon said.
Carbon Credits Sold on Chicago Climate Exchange
“Carbon credits, sometimes called offsets, are marketed through our company, or any member of the Mississippi Carbon Group, with the Chicago Climate Exchange (CCX). The CCX was formed in 2003 exclusively for trading carbon credits and operates much like the Chicago Mercantile Exchange,” Sirman explained.
According to scientific studies, pine and hardwood plantations sequester more carbon than most other southern species. For example, some unthinned plantations can sequester 2.3 to 4 metric tons or more per acre per day. At the current price of over $6.00 per metric ton, many landowners are jumping at the opportunity to earn this extra income.
Compatible With Conservation Reserve Program
“This program fits in very well with most tree farm management plans. Silvicultural activities such as thinning, burning, spraying, etc. are compatible with the program. Stands under the Conservation Reserve Program (CRP) are great candidates since the program does not conflict with the CRP”, Sirmon added.
Two types of contracts are available, one for plantations that have not been thinned and another for older stands that are under sustainable forest management. Current contracts run through 2022. However contracts signed before the end of 2008 for trees planted between 1990 and 2003 that have not been thinned are retroactive to 2003. This means that those who sign afforestation contracts this year could actually be paid for 19 years. If for any reason the contract is broken by the landowner, these credits must be replaced by using reserve credits or purchase credits.
To participate in the program, landowners may contact Sirmon and Associates at 601-854-6631, email gsirmon@aol.com or contact via cell phone at 601-260-9403 or 601-940-6545. You can also visit our website at www.sirmonandassociates.net.
Other members fo the Mississippi Carbon Group include May and Associates, Brandon; Canale Forest Management, Oxford; Southern Resource Services, Starkville; Longleaf Consultants, Lumberton; and Taylor Forestry, Summit.