1	Global Warming Policy & Pennsylvania Agriculture Hosted by The Clean Air Council 8 November 2006 Larry Breech, NFU
2	The world belongs in usufruct to the living
3	FARMERS UNION authorized to aggregate carbon credits
4	FARMERS UNION Carbon Credits Project Chicago Climate Exchange (CCX ™) is the world’s first and North America’s only voluntary, legally binding integrated greenhouse gas reduction and trading system for all six GHG emission sources, with offset projects worldwide
5	FARMERS UNION Carbon Credits Project Farmers and ranchers have the opportunity to sell their carbon credits in a nationwide market. Educate all stakeholders on the issue of climate change and agriculture's role in mitigating its effects
6	FARMERS UNION Carbon Credits Project Provides cash for utilizing acceptable conservation practices to reduce carbon in the air. NDFU carbon program began in spring 2006 and will be expanding nationwide in the coming months.
7	FARMERS UNION Carbon Credits Project Conversion to No-till cropping (.4 metric tons per acre Seeding long term grasses (.75 metric tons per acre) (Water-bank, Grassland Reserve, Switchgrass)
8	FARMERS UNION Carbon Credits Project Enhanced range management with increased vegetative index (.4 metric tons per acre?) (Cell grazing and short but intensive grazing practices) (Pending Approval) Creation or restoration of wetlands (4.5 metric tons per acre?) (Priority in Prairie Pothole region) (Pending Approval)
9	FARMERS UNION Carbon Credits Project Forestry - Reforestation or new forest areas may be recognized for carbon credits (CCX has provisions and rules for forestry projects.) Christmas trees and orchards possible.
10	FARMERS UNION Carbon Credits Project Manure management - anaerobic digesters may provide credits based on methane destruction and other offsets - current price maybe about $30 per cow annually. Impact of nutrient management, clean water credits, electricity produced will impact future value..
11	FARMERS UNION Carbon Credits Project Switchgrass may have potential as both a carbon credit mechanism as well as a feedstock for cellulosic ethanol production or co-firing in coal power plants. Long-term, there is huge potential for ethanol derived from crop wastes, forestry residues, and other bio-mass that may also generate carbon credits.
12	FARMERS UNION Carbon Credits Project Contracts are written for 5-6 years. Carbon credits priced yearly. Contracts are written with landowners or long- term lease holders. Tenants are given first rights to enroll. Producers will be paid the amount of the CCX payment annually less 10% service fee to NFU (aggregator).
13	FARMERS UNION Carbon Credits Project 20% of each annual payment held in escrow until the end of the 5-6 year contract to insure contract performance. Same contracts and contract provisions will be used for all aggregators.
14	FARMERS UNION Carbon Credits Project Farmer interest is directly related to carbon credit price. Pennsylvania has many cropping, manure, rangeland and forestry management opportunities. The aggregator model allows farm operations of all sizes to participate in the CCE.
15	FARMERS UNION Carbon Credits Project Discussion of 2007 Farm Bill environmental issues makes this timely. Carbon credits are in the news now and will become more valuable when there are emissions goals established. US political climate will determine success & value of this project.
16	FARMERS UNION Carbon Credits Project Farmers Union is a pro-active farm group, working on several futuristic projects. Tie in with other conservation programs through USDA. Potential to use producers as part of the NDFU/NASA study project using satellite imagery and other remote sensing to assess carbon sequestration levels based on changes in vegetative indexes.
17	FARMERS UNION Carbon Credits Project Other farm groups may view this as a threat to property rights (no easements, no recordings) The general public supports reducing greenhouse gas emissions, some may see this as an additional business cost. Coal fired energy industry and to some extent rural electric cooperatives may resist discussions. Selling credits now when they may be worth more later. The impact on landlord-tenant negotiations.
18	FARMERS UNION Carbon Credits Project Farmers Union considers carbon trading to be an innovative opportunity to improve farm income. We think a national market exchange (like CCX) for carbon credits offers both buyers and sellers the most efficient and most reliable form of trading. Our contracts through CCX will allow producers to benefit if carbon prices continue to increase. Environmental concerns will be a big part of the 2007 farm bill discussion.
19	FARMERS UNION Carbon Credits Project 14 states 1,266 participants 1,135,465 Acres enrolled $4.5 Million new market based income
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