There is great variability in contract length and payment schedule among carbon credit companies.
“Certainly, long contracts can be risky and that’s something to think about,” Daystar said.
Since the goal of carbon credits is to reduce climate impacts, not maintain the status quo, most contracts have a new practice requirement.
For example, growers contracting with Nori are not bound to any practice plan and are not liable for carbon losses that occur due to unforeseeable circumstances.
“Maybe you don’t get paid, hopefully you don’t have to pay anything back, maybe those payments resume the following year.
“There is much uncertainty about what verification will entail, and again a lot of variability between providers,” Daystar said.
For example, a Bayer program is offering $3 per acre, per year for no-till or strip-till practices and $6 per acre, per year for planting cover crops — allowing growers to earn up to $9 per acre per year when combining these practices.