Farmers are looking into a new enterprise that pays them for establishing carbon credits with companies wanting to reduce their carbon footprint.  According to an Iowa State University law specialist, there are several considerations farmers must know before signing a carbon credit contract. Kristine Tidgren is the director of the Iowa State Center For Agricultural Law and Taxation.  She says before entering in a long-term contract, be sure to know all the provisions.

Tidgren says companies want to offer incentives to farmers to entice them to sign long-term contracts and to utilize practices that will help sequester carbon in the soils at a higher rate than with normal production practices.

Tidgren says before farmers start thinking they could make some easy money. She says farmers will not be paid for any carbon sequestration method that is already a part of the farmer’s normal production.

Tidgren says farmers need to ask themselves if I sign up for a program today, will I be missing out on a better program tomorrow?