Carbon CreditsUS Small Landowners Are Taking a Cut of the Carbon Markets

US Small Landowners Are Taking a Cut of the Carbon Markets

New opportunities in carbon markets are giving US small landowners alternatives to logging while mitigating climate change.

According to the nonprofitย American Forest Foundation, the largest portion of forest land in the United States (39%) is family-owned (properties between 30 – 2,000 acres). The rest are under the government, timber companies, and other entitiesโ€™ ownership.

In this case, connecting small-scale landowners with carbon markets matters a lot.

In Pennsylvania, logging has been the common option to earn for smallholders to pay for their annual land taxes.

A landowner noted that many see timber as โ€˜free money up in the woodsโ€™. He further said that:

โ€œItโ€™s sort of the culture here. When we bought the property [55 acres behind their rural home in Pennsylvania], everyone was like, ‘Are you going to log it?โ€

But for him and his wife, they found a different solution – carbon credits.

Paying US Small Landowners for Capturing and Storing Carbon

Forest trees are nature’s technology for removing carbon. They represent the most viable, scalable, and cost-effective way to help address climate change.

Thatโ€™s why American Forest Foundation developed the Family Forest Carbon Program. It brings together small landowners, companies, and policymakers to improve forest health.

The program seeks to help family forest landowners with as little as 30 acres access the fast-growing carbon markets.

The couple signed a 20-year contract with the program to pay for their work in growing and protecting trees to suck in and store carbon. Theyโ€™ll receive income through carbon credits sold to companies wanting to reduce their emissions.

  • These credits are otherwise called carbon offsets – emissions reductions done elsewhere to cover for an entityโ€™s hard-to-abate footprint. Carbon offsets have been a major measure among companiesโ€™ net zero emissions targets.

Corporations can gain more value in seeking natural climate solutions like protecting forests, including:

  • High integrity verified carbon credits generated by American small-scale landowners
  • An avenue to provide economic support for rural American families and communities
  • A critical role in improving forest health and wildlife habitat

US small landowners, in turn, will get cash for their efforts in tending forest trees. They can then use the income to cover their tax payments and stay away from logging.

A big concern, however, arises from this logging alternative. Itโ€™s the high costs involved (up to $200,000) for project development, its monitoring, and so on.

This is where the model of agricultural coops kicks in to bridge the gap.

US small landowners donโ€™t have the ability to market directly to carbon credit buyers. But they can come together and form an aggregate to access carbon markets.

Tipping the scale on the value of forests

The US Senate had recently passed climate legislation thatโ€™s seen to boost the efforts of family forest landowners.

The approved bill will provide $450 million to help private landowners toward forest management practices with climate benefits. It contains specific provisions on promoting carbon programs like the Family Forest Carbon Program.

Once signed into law, the bill will unlock the power of small forest landowners to fight climate change.

This kind of program will help tip the scales on the value of forests, making standing trees more valuable than harvested timber. Then, in turn, it will guide private landowners to come up with sustainable forest management practices.

As per Sarah Hall-Bagdonas, senior forestry manager for the Family Forest Carbon Program:

โ€œThe majority of landowners donโ€™t actually say their number-one interest is in timber but the majority do end up timbering their land… So the voluntary carbon market [VCM] really provides them with another option besides the timber market.โ€

The VCM value more than doubled to almost $2 billion from 2020 to 2021 as reported by the Ecosystem Marketplace. This growth can be a good opportunity for both timber management and carbon markets to flourish.

Yet, another issue emerges – carbon price.

Logging firm owners believe that the financial incentive to reduce timber harvest and store carbon instead is not enough.

A timber company director said that the carbon price has to be a lot more than its present value. It should be around $30 – $60 per ton of carbon, or 2x – 3x todayโ€™s price.

Still, many other US small landowners are also joining the new opportunities that carbon markets offer.

Some of them are not only protecting forest health but also safeguarding biodiversity and rare species. Many are also managing wildfire to protect centuries-old trees that sequester carbon.

With more and more efforts like the American Forest Foundation reaching out to family forest owners, their participation in carbon markets will grow.

Other couples begin the same journey by comparing timber and carbon prices. But some remarked that carbon credits feel like a real opportunity.

Another small landowner couple in western Pennsylvania said that:

โ€œThis is the business of conservation that is being sustained, supported by a different type of economy… other than conventional forest products. This is something thatโ€™s absolutely new.โ€



Most Popular



Ultimate Guide



Loading...



LATEST CARBON NEWS

How 2026โ€“2027 Catalysts Could Make AEMC a Standout Nickel Story for Investors

Paid Advertisement - Disseminated on behalf of Alaska Energy Metals Corporation. Alaska Energy Metals Corporation (AEMC) is moving into a more decisive phase. The company...

Can DOE’s U.S.-Saudi Nuclear Deal Pave the Way for Uranium Enrichment?

The DOE announced on 22nd July that the United States and Saudi Arabia have signed a significant civil nuclear cooperation agreement. This deal could...

Ark Energy Secures FID for $1.3B Richmond Valley Solar Farm and Battery Project in Australia

Australia is enhancing its renewable energy framework with a major project. Ark Energy has approved the final investment decision (FID) for its AUD$1.3 billion...

AI Could Consume 20% of U.S. Electricity by 2035, BloombergNEF Reports

Artificial intelligence (AI) is creating a new challenge for the United States power sector. A new BloombergNEF (BNEF) analysis shows just how fast that...
CARBON INVESTOR EDUCATION

What Does “Net Zero Emissions” Really Mean?

The recent report from climate scientists is crystal clear: the world must act now. That means limiting global warming to 2 or 1.5 degrees...

Planting Trees for Carbon Credits: Everything You Need to Know

As climate change intensifies, nations and industries are seeking innovative ways to cut carbon footprints. Carbon credits have emerged as a key tool in...

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5โ€“16 billion metric tons of COโ‚‚ annually by 2050 to limit global warming to 1.5ยฐC. But with emissions still rising,...