Do the phrases ‘environmentally friendly’ or ‘sustainable’ make you feel good? Uplifted? Optimistic?If you’re like most Kiwi farmers, I’m betting that those phrases make you feel, at the least, a bit sceptical.
Do the phrases ‘environmentally friendly’ or ‘sustainable’ make you feel good? Uplifted? Optimistic?
If you’re like most Kiwi farmers, I’m betting that those phrases make you feel, at the least, a bit sceptical.
Often when the Government puts forward a new policy aimed at helping the environment and fighting climate change, it usually means the lives of farmers are about to get harder – with more regulations, more paperwork, and less clarity.
Most of the farmers I know aren’t against protecting the environment, what they’re against is stupid, illogical, and unrealistic policies.
However, there are some policies that help farmers make more money.
One of the global initiatives to help combat carbon dioxide emissions are ‘carbon credits.’ The basic concept is companies who produce over the limit of carbon dioxide can buy the credits, while those who produce under the limit can sell their credits.
The system is designed to incentivize businesses to become more environmentally friendly by offering a very real monetary reward – and farmers are in one of the best positions to take advantage of this global trend.
Photo / Greg Bowker
So who qualifies and how does it work?
Most farms are not carbon neutral – they produce emissions due to livestock, fertilizer, machinery operations and other components of farming.
However, one of the ways to counter emissions is through trees. Trees take in carbon dioxide and put out oxygen, meaning that enough trees on your farm can actually counter or even outweigh your carbon emissions.
And that’s how many farmers have been taking advantage of this new trend. You don’t have to be using heaps of land either. One hectare of forest is large enough to qualify for carbon credits. You also don’t have to allow for your on-farm emissions first, you’re entitled to credits for all the carbon being stored by your trees.
But the requirements do get quite specific. It isn’t enough to have some trees planted sparsely in a few spots over the farm.
It can be a bit of a hassle to get everything sorted out – from planting the trees, meeting the requirements, getting verified, then dealing with the Emissions Trading Scheme (ETS).
However, you need not worry, that is where CarbonCrop comes in.
CarbonCrop is a company based out of Nelson that partners with farmers to set them up to earn carbon credits.
Photo: RNZ / Conan Young
CarbonCrop’s 3-step process.
The first thing they do is assess your land. They’ll check out areas that could already be eligible for carbon credits, as well as land that's got potential.
There’s a risk that some people will lock up land with trees that would have been better suited for grazing or crops. This has been a problem in Australia, where plenty of people think too much land is being used for forests that would be much better for traditional farming. So, CarbonCrop will help you figure out what land is best suited for forests and what to leave alone.
They get this step done quickly too because it’s done remotely using aerial photography (the whole process is done remotely). This means you can know ASAP what the potential is for your farm.
The next step is putting together a strategy. They’ll talk with you and help you understand the ETS requirements and what sort of ROI you could expect.
The last step is submitting your application to the ETS. CarbonCrop handles all the paperwork and carbon verification, getting together all the evidence you need. A lot of time is saved here, because the process of getting approved can be a real headache if you’re trying to do it alone. After that, you either get a yes or a no.
The great thing about these guys is they aren’t charging any upfront fees. Instead, they take 10% of your carbon credits (or less if you register large areas). You have to get approved and be making money before they can even get their first paycheck.
It’s all remote as well, so you don’t have to take any time off to take people around on the farm. You just give them the info they need, and they do the work.
One of the farms that are really leading the way with this sort of thing is Lake Hawea Station (LHS).
LHS is a merino sheep and beef station situated in Hawea, close to Wanaka down in the South Island. LHS is the first farm in New Zealand to be carbon positive, a milestone they reached last year.
The other day I spoke with Finn from LHS about their experience working with CarbonCrop. He said the most valuable part for them was having a ‘carbon value’ assigned to particular parts of their farm that they were considering registering for Carbon Credits.
Having this value assigned enabled the LHS to clearly compare farming the land vs. registering it for carbon credits from an economic perspective.
What I like about partnering with CarbonCrop is that it removes a lot of risks that would otherwise remain if you were to embark upon this journey without the wealth of experience they have. These guys are developing a name for themselves because they’re a great partner to farmers who don’t have the time to devote to managing this whole process alone.
Yes, it’s great to have a ‘carbon credit’ option and the possibility for another revenue stream, but that doesn’t mean anything if farmers can’t capitalise on it.
image credit The Guardian
The 2018-2022 carbon credit window - your chance to get paid retrospectively
for credits.
There’s a saying that in life, you’ve got to do the best you can with the hand you’ve been dealt. That’s sort of how it is today with farmers.
Whether you believe in climate change, believe in it but think it’s overblown, or have serious doubts, the truth is our government and governments across the world are pushing ahead with policies to counter climate change.
This can be quite challenging for farmers, but there are opportunities that can come out of the situation – like carbon credits.
How it works:
Carbon credits are accounted for in cycles. Much like a 12 month financial year, where once the books are closed, they’re closed, no more changes to the books. 2022 is the final year of the current carbon accounting period. That means if you want to register for credits, you have until the end of 2022 to get in and claim credits from 2018-2022.
If you miss that window, then the chance to grab those credits retrospectively is gone forever. The new period starts in 2023.
It can take between 6-9 months to get registered, so if you’re thinking this could be an option for you, take action as soon as you can. From what I have seen, CarbonCrop offers the best service, so I’d recommend having a talk with them and seeing what’s on the table.
If you think you may be eligible and would like to talk with CarbonCrop, then click the link below for a free land assessment:
https://form.jotform.com/220266060258854
