Conservation Tillage & Grassland Carbon Program

A commitment by the agricultural operator to follow conservation tillage practice guidelines established by the Chicago Climate Exchange for a period of five years will result in the issuance of carbon credits in an amount ranging from .20 to .60 carbon credits (metric tons of carbon sequestration) per acre.  Eligible grassland acres MUST HAVE BEEN CONVERTED TO GRASS FROM CROP AFTER 1/1/99 and generally earn carbon credits at a rate equal to 1.0 carbon credit per acre.  The appropriate geographic maps should be referenced to confirm the carbon credit issuance rates for individual practices and geographic locations.

The practices associated with all enrolled acres are subject to verification (ten percent or the enrolled acres are verified annually).  Twenty percent of the issued carbon credits are held-back to secure compliance with CCX practice guidelines for the five year enrollment period.  The remaining carbon credits are sold at the then prevailing carbon prices which change daily.  Historical carbon pricing on CCX have roughly ranged between $1.00 and $5.60 per metric ton.  Acres enrolled during 2008 crop season may sell 2007 and 2008 carbon credits.