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Carbon Credits - getting paid to NOT cut your timber

Boll Weevil said:
This might work because it's not mature enough harvest yet anyway. But I wonder if the timber has to be a certain age before it can be enrolled. Acres of saplings can't be possibly be consuming much carbon when compared to a stand of mature timber.

But you make a good point; if they'll enroll ANY timber stand, I can see where the landowner might have a win+win. CC for 25yrs + a timber thin in yr 26.
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I don't know but I would if it was younger trees. I only have 400-500 an acre in most of what I own so I'd call it a win at that 😂
 
I sell carbon credits....not for timber but for energy generated by solar panels. $32 per 1k KW hours generated. The contract is for 3 years. So I get 32-96$ monthly. I think the broker gets like $5 credit sold. It is very tightly monitored as to how much is generated on a daily basis.

It was a consideration when making the initial investment to put in the solar panels as it shortens the break even point by a couple of years. We had our panels put in 8 months ago and it has completely covered the power bill so far...not the credits but the generation itself.
 
readonly said:
I sell carbon credits....not for timber but for energy generated by solar panels. $32 per 1k KW hours generated. The contract is for 3 years. So I get 32-96$ monthly. I think the broker gets like $5 credit sold. It is very tightly monitored as to how much is generated on a daily basis.

It was a consideration when making the initial investment to put in the solar panels as it shortens the break even point by a couple of years. We had our panels put in 8 months ago and it has completely covered the power bill so far...not the credits but the generation itself.
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Very interesting readonly.
 
BSK said:
An example of the economics: my ridge-and-hollow property won't grow a food plot to save my life, but what it will grow - quite well - is Oaks. It will grow some amazing White and Red Oak. If we harvest an area down to 12" DBH, we can cut on about a 25-year rotation. Our part of the profits (after the split with the logger) ranges from $1,000-2,000 acre. Again, that's once every 25 years. These Carbon Credit companies are paying $200-300/acre over a 25-year contract, annualized (basically, $8-12/acre/year). So there's the difference. Sell CC for $200-300/acre every 25 years, or cut timber and make $1,000-2,000/acre every 25 years.
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I would have guessed the price per acre would be higher on the oaks but maybe it's dependent upon density per acre of the trees??? We finally managed to get our pines cut on our farm and the loggers just wrapped about a month ago. We didnt get $2k/ acre but we definitely were mid $1's depending upon the stand they were in. Feels good getting those babies out of there!
 
Deck78 said:
I would have guessed the price per acre would be higher on the oaks but maybe it's dependent upon density per acre of the trees??? We finally managed to get our pines cut on our farm and the loggers just wrapped about a month ago. We didnt get $2k/ acre but we definitely were mid $1's depending upon the stand they were in. Feels good getting those babies out of there!
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Our last cut, we did a 50/50 split with the loggers. The mill paid a hair over $4,000/acre for the trees (and that was a cut to 10" DBH), so we each made a little over $2,000/acre. But much depends on the price of oak at the time. Most of ours was being cut for white oak barrel staves (for craft distilleries).
 
I've been checking into this a bit and have an appointment Monday to get into further detail. I've got a place that was cut very hard 10 years ago and probably won't be ready for 30-40 years. They are claiming $230 acre. That's way more than my annual property taxes per year.
 
PickettSFHunter said:
I've been checking into this a bit and have an appointment Monday to get into further detail. I've got a place that was cut very hard 10 years ago and probably won't be ready for 30-40 years. They are claiming $230 acre. That's way more than my annual property taxes per year.
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Definitely let us know how it goes. It has peaked my intrest. We have 67 acres, all wooded except about 4 or 5 acres. It was logged back in 2001ish, per the Forrester that did my greenbelt walk through he estimates another 20 yrs before being ready to cut again. We have no intentions of ever cutting it or living on the land, so if the price is right, why not?
 
I had an appointment on this today. The program I was talking to is at $276 acre for me right now. They pay for the forester to do the forest management plan. You can opt out some acreage for a cabin or clearing a food plot or whatever. You can still do timber stand improvement and you can actually still harvest timber as long as that doesn't exceed 25% of the basal area. I have another appointment in December to talk to a forester to get more in depth on those details. 20% is paid upfront with the rest being in annual payments over the remaining 19 years. Is this greenwashing? Oh absolutely I think so but I'm going to continue looking into it with the forester.
 
PickettSFHunter said:
I had an appointment on this today. The program I was talking to is at $276 acre for me right now. They pay for the forester to do the forest management plan. You can opt out some acreage for a cabin or clearing a food plot or whatever. You can still do timber stand improvement and you can actually still harvest timber as long as that doesn't exceed 25% of the basal area. I have another appointment in December to talk to a forester to get more in depth on those details. 20% is paid upfront with the rest being in annual payments over the remaining 19 years. Is this greenwashing? Oh absolutely I think so but I'm going to continue looking into it with the forester.
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Would you mind sharing which group you're working with? Privately by pm is ok. Thanks.
 

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