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Ag law expert says carbon contract popularity driven by commodity prices

An ag law expert says there’s lack of clarity for farmers who want to sign carbon sequestration contracts despite increasing interest in carbon markets.

Dave Aiken with the University of Nebraska-Lincoln says the demand for contracts is likely driven from commodity prices. “When people were pushing the pencil pretty hard to breakeven, an extra $10 or $15 per acre was going to help the bottom line a lot,” Aiken says. “Now that prices have improved quite a bit, people are still interested but not necessarily as something that will help them get through this year.

Aiken tells Brownfield check lists are available for contracts until the industry becomes accustomed to the practice. “It could be something significant in agriculture from here on out for the next 50 years or more.  Something, they want to find out about and if it looks attractive to them something that they’re willing to do then they’re willing to look at it harder and jumping in.”

Aiken says producers should check with their lawyer before signing carbon contracts.