Page 33 - C:\Users\sandi\OneDrive\Documents\Flip PDF Professional\Ebook-AgriculturesSustainableFuture-Final\

The carbon bank concept is the brainchild of should be to “engage producers in USDA con-
Robert Bonnie, a former USDA undersecretary servation programs that get them on the path of
for natural resources who co-authored the “Cli- climate smart or ecologically beneficial prac-
mate21” recommendations and is now the leader tices, and that perhaps provides them a modest
of Biden’s USDA transition team. The Climate financial signal,” Reed said.
21 report says Biden should consider announcing “The thing we are all struggling with is the pub-
immediately that he intends to set up the carbon lic role,” Reed says, “and what USDA does to
bank, possibly starting as a pilot project. support these markets. We need a lot more tech-
“A USDA carbon bank would provide a guaran- nical assistance on the ground … that can help
teed price for producers while guaranteeing the farmers and ranchers” to assess their potential
environmental integrity of carbon conservation to measure their stored carbon or other GHG
practices,” according to the “Climate 21” report fighting action, she says.
outlining the recommendations to Biden. Once farmers “see the benefits of changing sys-

“The CCC has up to $30 billion in borrowing tems-based approaches in a manner that makes
capacity, about 60% of which is used annually for them more ecologically and economically resil-
ongoing activities. If the CCC allocated even $1 ient, they have a better understanding of how
billion annually towards purchasing carbon cred- they might participate in a free-market approach
its, at $20/ton, this could produce 50 megatons such as ESMC’s,” she says.
(50 million tons) in GHG reductions annually.” Officials with Indigo Ag see the USDA carbon
By comparison, Walmart has pledged to reduce bank as another potential buyer of credits.
its supply chain emissions by a billion tons (the Indigo could serve as an aggregator, buying
equivalent of taking more than 200 million cars credits from farmers and selling them to USDA.
off the road), with 200 million to 300 million “The CCC taking on this role would send a
tons of that coming from agriculture. Walmart is strong price signal to the private offset market
the world’s largest grocer.
overall and provide stable demand to the sup-
Ferd Hoefner, strategic policy adviser to the ply-side, encouraging both farmers and project
National Sustainable Agriculture Coalition, says developers to invest in project implementation,”
a USDA carbon bank “would effectively be set- said Laura Wood Peterson, senior director of
ting the price for carbon sequestration (or GHG government affairs for Indigo. “This allows
emissions reduction) in the same way that the USDA to reduce uncertainty for farmers and
CCC once upon a time, long ago effectively set spur innovation from the private sector, as an
the base price for corn.” engine of economic growth.”
Debbie Reed, the executive director of the
Ecosystem Market Services Consortium, says a $15 startup carbon market arising
USDA carbon bank has the potential of crowd- The question most farmers want an answer to
ing out private carbon markets, depending on immediately is how much they could get paid.
how expansive the government program is. So far, the answer is about $15 per ton.
Some critics of private markets think USDA For perspective, a farmer in the Midwest could
would do a better job of policing credit trading.
realistically sequester half a ton to a ton of car-
But Reed doesn’t believe the Biden advisers bon per acre using such practices as conservation
intend to shut out private markets. To avoid tillage and cover crops, according to Jerry Hat-
disrupting private markets the government’s goal field, a retired USDA soil scientist who has served

www.Agri-Pulse.com 33