An Example Project
Below is an example of a fcorn farmer in Ohio with 20 acres of trees planted for CRP.
Note: Many factors can influence how much the payments will be for a landowner, including the day-by-day price of carbon. This is an emerging field and there is no way we can realistically predict what the prices will be.
$3/ton is typical, but it could be half that or double that. Some plantings will get very little credit, and some more. If the US goes to a "cap and trade" system it is likely that the prices of carbon may get MUCH higher.
The 20% "risk pool" are credits that are held back from being paid out until the end of the contract. If there is a natural disaster or some circumstance where carbon is not stored as expected this may be reduced, otherwise most or all of it will be paid out at the end of the contract period.
A chart of typical per acre storage rates is at the end of this page.
| Carbon Price | 3 | |
| Tons/acre | 3.5 | years 0-5 "Corn Belt" hardwoods |
| Tons/acre | 4.54 | years 6-10 "Corn Belt" hardwoods |
| Risk pool | 20% | |
| Broker fee | 10% | |
| Verification | .25/ton |
| 20 Acres planted 1995 | ||
|---|---|---|
| 1995 | 20 | Planted |
| 1996 | 20 | N/E |
| 1997 | 20 | N/E |
| 1998 | 20 | N/E |
| 1999 | 20 | N/E |
| 2000 | 20 | N/E |
| 2001 | 20 | N/E |
| Eligible yrs | Acres | Tons/acre | $/Ton ** | Total | Risk pool | Broker fee | Verification | Landowner Income |
|---|---|---|---|---|---|---|---|---|
| 2002 | 20 | 4.54 | $3 | $250 | $50 | $25 | $1 | $174 |
| 2003 | 20 | 4.54 | $3 | $250 | $50 | $25 | $1 | $174 |
| 2004 | 20 | 4.54 | $3 | $250 | $50 | $25 | $1 | $174 |
| 2005 | 20 | 4.54 | $3 | $250 | $50 | $25 | $1 | $174 |
| 2006 | 20 | 4.66 | $3 | $256 | $51 | $26 | $1 | $178 |
| 2007 | 20 | 4.66 | $3 | $256 | $51 | $26 | $1 | $178 |
| 2007 Payment: $1,051.11 | ||||||||
| 2008 | 20 | 4.66 | $3 | $256 | $51 | $26 | $1 | $178 |
| 2008 Payment: $178 | ||||||||
| 2009: $178 | ||||||||
| 2010: $178 | ||||||||
| 2011: $178 | ||||||||
| Total Payments Through 2011: $1,764 | ||||||||
| Returned "Risk Pool" if no losses: $507 | ||||||||
Total Contract Value: $2,271
N/E- credits are only given for planted areas for years 2002 and later.
Generally credits are only given for the current year.
** Carbon prices vary significantly. To date they have been generally between $2 and $4.
Europe has a "cap and trade" system in place requiring companies to reduce or offset emissions
In Europe prices are much higher than in the US, $15 and above.
Note: carbon credits per acre are estimated based on the CCX tables, real results may vary
Fees are also just estimates as they also may change based on unexpected changes at CCX.
Dense Planting (250 or more stems/acre) Carbon Accumulation (Metric tons CO2 per acre annually)1
| Years since planting | ||||
| U.S. region and species* | 0-5 | 5-10 | 10-15 | 15-20 |
|---|---|---|---|---|
| SE Loblolly | 1.51 | 1.86 | 6.99 | 6.17 |
| SE Slash | 1.51 | 1.75 | 6.52 | 5.83 |
| SE longleaf pine | 1.40 | 1.51 | 5.24 | 4.78 |
| Delta loblolly | 2.21 | 2.80 | 7.81 | 7.92 |
| Delta slash pine | 2.10 | 2.68 | 7.69 | 7.69 |
| Southern plains loblolly | 2.10 | 2.45 | 6.87 | 6.87 |
| Appalachian loblolly | 1.63 | 1.98 | 7.11 | 6.41 |
| Appalachian shortleaf pine | 1.51 | 1.75 | 6.52 | 5.71 |
| Northeast white/Norway spruce | 1.28 | 1.28 | 1.40 | 2.56 |
| Northeast red pine | 2.68 | 3.38 | 3.50 | 3.50 |
| Lake States, white spruce | 3.61 | 4.78 | 4.66 | 5.01 |
| Lake States, red pine | 2.10 | 2.45 | 2.56 | 4.31 |
| Corn Belt mixed hardwoods | 3.50 | 4.54 | 4.66 | 4.78 |
| Corn Belt mixed softwoods | 3.96 | 5.13 | 5.36 | 3.50 |
| Northern Plains, mixed hardwoods | 1.98 | 2.45 | 2.45 | 2.45 |
| Rocky Mountains, ponderosa pines | 1.40 | 1.40 | 1.51 | 2.33 |
| Pacific Coast Douglas fir | 1.05 | 1.40 | 1.28 | 3.26 |
| Pacific Coast ponderosa pine | 1.63 | 0.70 | 0.82 | 0.93 |
* If the species and region combination do not match your Project, apply the Carbon Accumulation Value for the species you have that are applicable to a climatically similar climate. Projects in Canada should apply the carbon values applicable in the closest U.S. region listed above unless undertaken more than 250 miles from the U.S. border.
Region definitions:
SE (southeast): AL, FL, GA, SC; Delta: AR, LA, MS; South Central: AL, AR, LA, MS, OK, TN, TX; Southern plains: OK, TX; Appalachiain: KY, NC, VA, TN, WV; Northeast: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; Lake States: MI, MN, WI; Corn Belt: IA, IL, IN, MO, OH; Central States: IA, IL, IN, KS, MO, NE, SD; Northern Plains: KS, ND, NE, SD; Rocky Mountains: AZ, CO, ID, MT, NM, NV, UT, WY; Pacific Coast: CA, OR, WA
1 Source: The values in this table are 70% of the annualized carbon accumulation quantities for carbon in live vegetation that are reported in "Regional Estimates of Timber Volume and Forest Carbon for Managed Timberland" by Richard Birdsey, in "Forests and Global Change", Volume 2: Forest Management Opportunites For Mitigating Carbon Emmisions, Sampson, R.N., and Hair, D., eds.