The Biden administration has recently announced an investment of $150 million to accelerate sales of carbon credits, with a focus on small forests.
Earlier this week, US Agriculture Secretary Tom Vilsack announced a new program that aims to assist owners of small parcels of forestland in partnering with companies that are willing to compensate them for carbon offsets and other environmental benefits.
Over the past decade, the market for companies paying landowners to either grow or conserve trees as a means of offsetting their carbon emissions has significantly expanded. While companies are investing billions of dollars in environmental credits, small landowners frequently face obstacles when attempting to offer this type of service.
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To participate in the market, landowners need to undertake various steps, such as conducting an inventory of their forested property, developing a land management plan, and calculating the carbon value of their land through models.
These requirements have proven to be overwhelming for many small landowners, preventing them from accessing the benefits of carbon credit sales. By investing in this initiative, the Biden administration aims to provide support and resources to these landowners, allowing them to participate in the market and making a significant impact in the fight against climate change.
The funding stems from the climate law passed by Congress last year and specifically focuses on supporting underserved landowners, such as military veterans, new farmers, and families owning 2,500 acres or less.
However, experts point out that small landowners should not expect significant profits from selling these environmental credits. For instance, the American Forest Foundation’s Family Forest Carbon Program reports average earnings of only $10 per acre per year.
Despite the limited financial benefits, the program emphasizes the importance of collective efforts in addressing climate change. By encouraging landowners with small acreage to participate, the Biden Administration hopes to create a domino effect that adds up to a substantial reduction in carbon emissions.
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