Carbon Credit FAQs

Why should I participate?

The Michigan Conservation & Climate Initiative (MCCI) rewards farmers and landowners for being good stewards of the land. By practicing conservation tillage or planting grasses and trees, farmers and landowners are offsetting industrial air pollution through carbon sequestration, a service for which companies are willing to pay. This market-based approach pays landowners for providing a valuable ecosystem service—-all without government intervention.

When will I be paid and how frequently?

Payments are typically made once per year after the verification process has been completed. Once the land is verified the carbon credits can be traded on the Chicago Climate Exchange (CCX). The Delta Institute will pay you no later than 30 days after pricing and sale of the carbon credits through the CCX.

After I have submitted the forms and documents specified in the contract, when will I be notified whether I have been accepted? Will I receive a copy of the contract?

Yes, the Delta Institute will contact you after the enrollment form and contract has been received. A copy of all of the pertinent paperwork will be sent back to you.

Once enrolled, will I need to submit any forms or reports on an ongoing basis? If yes, how often?

Yearly project reports are required to be submitted to the Delta Institute. The report is a one page form attesting conformance with the contract requirements, verifying the number of acres enrolled in the program, the project type, and project locations.

Will every acre or manure digester enrolled in the program be verified?

For cropland and small forestry projects (less than 2000 metric tons of carbon), the CCX will randomly select a percentage of the pooled acreage for on-site verification by approved entities. All medium and large forestry projects will require third party on-site verification. The fees for the on-site verification will be the responsibility of the landowner. Arrangements can be made through the Delta Institute for funding third party verification. The Delta Institute, as the aggregator, will arrange for the verification.

Every manure digester project enrolled in the program will be verified by a third party verifier. In the first year of the program, a representative of an approved verification company will visit the facility to observe the equipment and review pertinent records. A visit is not needed in subsequent years; however, pertinent records will have to be provided to a third party verifier.

Who will verify my practices and when? How frequently?

Michigan projects will be verified by the local Soil and Water Conservation District or another CCX-approved verifier. Depending on when the application packet is finalized, verification will occur either in the fall or the spring. Depending on when the application packet is finalized, verification will occur either in the fall or the spring. The benefit of conducting the verification more than once per year is that carbon credits for the verified time period can be sold on the CCX.

What are the consequences if I don’t continue conservation tillage or grass plantings for the required five-year period?

The contract contains stipulations for non-compliance with conservation tillage or grass planting practices. Non-compliance with the contract would require the project owner to return a quantity of the carbon credits for the project years or pay an amount equal to the cost of the credits. Additionally, the project owner may not be allowed to further participate in the CCX.

Can I cancel my contract?

The project owner can cancel the contract through a mutual agreement with the Delta Institute.

Can you clarify what land is eligible for this program?

Land enrolled in the MCCI must be capable of being cropped—-that is, the land could be used for a row crop or small grain production. Prior to the conservation practice eligibility dates, the land must have been in either agricultural production or a degraded state.

Can you clarify the status of land that was put into grass prior to Jan 1, 1999?

Land that had grass established on it prior to January 1, 1999 is not eligible for this program. Also, lands in the CRP program prior to January 1, 1999 are also not eligible.

Can you clarify the definition of no-till?

For CCX purposes these practices are as defined in the Natural Resources Conservation Service National Handbook of Conservation Practices. No-till/strip-till are defined as follows: Managing the amount, orientation, and distribution of crop and other plant residue on the surface year-round while growing crops in narrow slots or tilled or residue-free strips in soil previously untilled by full width inversion implements.

A general guideline is that after the implement has been through the field, there must still be a substantial amount of surface residue present (at least 66%) and the soil disturbance must not be full width. If use of the implement would require that a leveling or smoothing activity follow, it would probably result in too much soil disturbance. Disturbing less than 1/3 of the row is a commonly accepted guideline.

Are Christmas tree farms, nurseries or fruit orchards eligible to earn offset credits? What about pasturelands?

No. At this time, the CCX does not credit Christmas tree farms, nurseries or fruit orchards for the conservation benefit that those lands provide. Likewise, the CCX does not accept pasturelands, grazing lands or paddocks.

Why do you need my social security number on the contract?

Since the Delta Institute is making payments to landowners, this information is needed for tax purposes.