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Michigan supports "carbon trading" on exchange market: Conservation can net landowners $2 to $12 per acre

Contact:  Bridget Beckman 517.373.1104
Agency: Agriculture


May 2, 2007

LANSING - The Michigan Department of Agriculture (MDA), Michigan Association of Conservation Districts and other agriculture advocates are partnering to reward and encourage conservation by private landowners. The Michigan Conservation and Climate Initiative (MCCI) seeks to sequester-or harness-carbon dioxide that is released into the atmosphere when certain conservation practices are followed. Farmers can earn “carbon credits,” which can then be sold on the Chicago Climate Exchange, a member-based market. In addition to generating revenue for owners, the measure will improve the state’s water quality and wildlife habitat.

“Many Michigan farmers and landowners already incorporate sound conservation practices into daily farm management,” said Mitch Irwin, MDA director. “Participating in this program, however, enables landowners to produce an additional and very valuable commodity - carbon credits.”

To turn carbon credits into dollars, landowners enrolled in the MCCI program allow Delta Institute, a non-profit organization, to sell the credits on the Chicago Climate Exchange - a market comprised of large companies, municipalities and institutions, including Ford, Dow and Michigan State University. At current market prices, a landowner can typically earn between $2 and $12 per acre per year depending upon the conservation practice. Landowners must sign a contract and commit to maintain the conservation practice through 2010.

“The Michigan Conservation and Climate Initiative rewards farmers and landowners for being good stewards of the land,” explains Gordon Wenk, director of the Michigan Department of Agriculture Environmental Stewardship Division. “By practicing conservation tillage or planting grasses and trees, farmers and landowners are sequestering or holding carbon dioxide, and in turn, offsetting greenhouse gas emissions.”

The 79 Michigan Conservation Districts throughout the state will be the “gateway” for this initiative, providing landowners with information, enrollment assistance, and verification services, according to Lori Phalen, Executive Director for the Michigan Association of Conservation Districts. Additionally, the Michigan Department of Agriculture has been instrumental in the development of this initiative.

Landowners can earn revenue from this program while still utilizing government cost share programs such as the Conservation Reserve Program (CRP) and the Conservation Reserve Enhancement Program (CREP).

More information is available at www.michiganclimate.org.

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