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    Environmental Land Management Scheme/Policy

    CAAV warns of selling carbon too cheaply

    Matthew TiltBy Matthew TiltNovember 2, 20213 Mins Read
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    Meandering,River,Making,Its,Way,Through,Lush,Green,Rural,Farmlan

    The Central Association of Agricultural Valuers (CAAV) is warning farmers that sequestered carbon is too important to be sold easily or cheaply. The rise in carbon trading schemes has accelerated at a pace as pressure mounts on all businesses to reduce their carbon footprint.

    However, Jeremy Moody, secretary and advisor for the CAAV, is warning that carbon should not be sold hastily and should likely be kept in the business.

    “Not only is the value of the carbon stored in farmers’ soils and woodland likely to increase in coming years, signing up to selling it might unwittingly tie them into restrictive agreements,” he said.

    “More importantly, net-zero isn’t just a target for corporate organisations to achieve through offsetting. Farmers will also need to find and use their own sequestered carbon to offset their own emissions. Selling carbon early will make that harder for the farmer.

    “Very basically, the simple business of being a farmer is about managing carbon, and if you are in a position where you can’t touch the carbon you have sold, this will limit your ability to farm,” he added.

    Farmers will need to consider what penalties might be included in an agreement if they are unable to meet a carbon-sequestering goal.

    “If you commit to plant trees or ensure a percentage of carbon in your soils in a legal agreement, and then the land is compromised by events such as fire, disease or flooding, what fines could you be subject to and what is your liability?” Mr Moody said.

    They will also need to consider how long they will be tied into agreements and the impact this could have on developing or selling land. Mr Moody advised that it may be safer to enter into agreements where farmers are paid to manage land in a carbon-friendly manner.

    Even if farmers are considering their options to manage or plant woodland to sequester carbon, there are things to be wary of.

    jeremy moody (website)
    Jeremy Moody

    “At the farm level, the price is not great,” said Mr Moody. “One hectare of oak woodland could have gained £2,000 worth of carbon after 80 years with one of the main woodland carbon schemes. There just isn’t a great deal of value to sell.”

    Any area of woodland that farmers believe they can sell from the carbon from will also be smaller than they anticipate, as part of the area will have to be kept back as a buffer for contingency and risk management while vulnerable to failure, disease and fire. Farmers may also unknowingly get tied into conservation designations, meaning that they cannot fell trees when required.

    Plus, woodland won’t be properly offsetting carbon unless it’s there for 100 years, said Mr Moody. “If it’s felled before then, much of the carbon held in the tree will be lost.

    “However, it’s important that carbon is stored in one way or another on-farm – helping the farm to be net-zero – and it might be that it’s better through soils.

    “Selling soil carbon could help farmers in the short term, but fetter them in the medium and long term,” concluded Mr Moody. “The value isn’t as great as people assume and the constraints could be crippling. All that glitters is not gold.”

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    Matthew Tilt
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    Machinery editor for Farm Contractor & Large Scale Farmer. Matt has worked as an agricultural machinery journalist for five years, following time spent in his family’s Worcestershire contracting business. When he’s not driving or writing about the latest farm equipment, he can be found in his local cinema, or with his headphones in, reading a good book.

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