Family forest owners are a vital piece of the land ownership puzzle in the United States, and they will have a key opportunity in the coming decades to positively impact climate change. However, the high costs of property taxes and forest upkeep have long been a challenge to navigate without resorting to timber harvests.
Many owners wonder how to make money from a forest without having to harvest all the trees. This is where income from a forest carbon project can make an important difference.
Family Forest Owners Are the Cornerstone of Private U.S. Forests
With the sheer volume of private family forest land in the U.S., it should be no surprise that owners are interested in making the most of their revenue opportunities. Data from the latest Forest Service survey shows that private ownerships account for 60 percent of all forested land in the contiguous U.S. states. Out of all that land, family forests are the single largest ownership category, with an estimated 272 million acres — more than corporate-owned forests, tribal lands, and all other private forests combined.
Recent developments in technology (and the expanding carbon market) have finally made it possible for private owners to enroll these important forest lands in programs that produce high-quality carbon offsets and credits. Many forest owners are now asking, “What are carbon credits? Is this a viable source of revenue?” Programs start from a commitment not only to harvest timber but to also aid the forest in storing additional carbon. From there, it’s best to use methodologies built from the latest and most accurate standards and to achieve verification from well-established carbon registries.
What Are Carbon Credits?
By sequestering additional carbon in healthy, standing forests, owners can generate verified “carbon credits” to organizations that need to offset their own greenhouse gas emissions.
A carbon credit is a measurable unit of how much extra carbon the forest has stored in trees and soil above and beyond what it would have stored in a business-as-usual scenario. These credits are issued to quantify emissions that have been removed from the atmosphere (carbon removal credits) or anticipated emissions that were avoided (avoided emissions credits).
Reputable carbon registries such as ACR (the American Carbon Registry) provide methodologies grounded in robust, peer-reviewed science that project developers like LandYield use to verify carbon gains of projects. The project developers must precisely follow all guidelines laid out by the standard, and then independent auditors ensure that everything has been done and calculated properly.
Once verified, carbon credits can be purchased by outside parties who are interested in lowering their greenhouse gas emissions footprint. Credits are a ton-for-ton exchange; to offset one ton of GHG emissions, the party purchases one credit (one ton of removed or avoided emission) from the same year.
How Does Income From Carbon Credits Help Landowners?
Carbon revenue can help cover regular carrying costs of forests such as taxes, maintenance of roads, culverts, fences, and other infrastructure, establishment of non-harvesting commercial or recreational opportunities on the land, and regular maintenance of the forest and its wildlife habitats. In this way, carbon revenue can also help alleviate development pressure keeping these ecologically important forests from being converted to other land uses. The long-term design of these programs can mean a reliable, periodic revenue source from your forest for decades to come.
Most importantly, you can realize all of this value while growing and enjoying a mature healthy forest. Clear-cutting timber may be a quicker way to turn forested land into cash, but regrowing the forest takes decades. Carbon offset projects work in the opposite way – protecting your land, your legacy, and the beauty of its natural wonders while improving upon it and helping it appreciate in value.
Land Stewardship Brings Intrinsic Rewards
The improved management of your family forest during its tenure in a carbon program is an investment in the forest, the climate, your family, and the future. However, the sale of carbon credits is only one way to realize the value of your land. For most forest owners, it’s not even the most important one.
According to the same Forest Service Survey cited above, the top five reasons owners cite for owning forest land are:
- Beauty or scenery
- Wildlife habitat
- Nature Protection
- Family Legacy
- Privacy
The true value of owning a family forest is the forest itself. Owners treasure the babbling brooks, verdant groves, scenic hiking trails, and shady hollows that are thrumming with wildlife. The sights and sounds of a healthy wood are a testament to your family’s legacy that can be passed down for generations – so long as you protect and preserve it.
Your forest carbon project can only reach its full potential with dedicated effort and proper forest management. However, what you get in return matters twofold: First, regular payments to alleviate some of the cost of stewardship. Second, a pathway to enhancing beloved natural habitats, animal biodiversity, water quality, soil health, and the recreational value of your land.
If you’re interested in more information about how to make money from a forest with carbon credits, get in touch with the LandYield team to learn more about our innovative carbon program methodology. We’d love to help you keep your forest in the family – and keep it a forest!
