-Messenger photo by Britt Kudla
David Hora, of Continuum Agricultural, speaks about carbon credits during the Smeltzer Learning Farm field day on Tuesday in Otho.
OTHO — August may have never looked so green as it did Tuesday evening as farmers and experts in farming the carbon market came together under the setting sun, surrounded by the tall corn at the Smeltzer Learning Farm for a field day.
Carbon markets and green ammonia may have been the focus of the meeting, but farmers will never gather together without talking about the crops, the markets, and the weather. On that, there was general agreement in the small talk that a dry spell would be welcome to assist in the coming harvest. That’s nearly unheard of, as in most years one good rain to finish out the crop is the wish this time of year.
With tall corn on every side, it was obvious that a good crop is out there waiting for farmers this fall. But high yields often translate into falling market prices. Farmers gathered for this field day wanted to hear about the opportunity to open up a new revenue stream through the sale of carbon credits created by better soil health practices.
David Hora, of Continuum Ag, told those in attendance that the time for reaping the benefits of carbon markets has arrived.
“There is no time to wait,” Hora said.
-Messenger photo by Britt Kudla
Wade Kent, of Landus, talks about green ammonia during the Smeltzer Learning Farm field day on Tuesday in Otho.
While carbon markets have been talked about a lot in recent years, he encouraged farmers to stop the debate and start farming their carbon.
“The time to wait and see is past,” he said. “This is the time to get your CI score.”
CI, or Carbon Intensity, is defined by the Iowa Corn Growers Association as the amount of energy footprint needed to produce a crop. The lower the score, the more attractive it is for those companies who need carbon credits to offset their own footprint. In Iowa, higher than average national yields can translate into lower scores — and thus greater revenue opportunity.
Hora invited farmers to visit topsoil.ag to determine their CI score.
“There is value in your data,” Hora said. “You want to be in control of your data and capture the value based on proactive measures.”
-Messenger photo by Britt Kudla
David Nelson, of Holganix, talks about soil heath and carbon markets during Smeltzer LearningFarm field day on Tuesday in Otho.
David Nelson of Holganix focused his presentation on how improving soil health can maximize yields and carbon credit potential. Holganix offers biologicals that Nelson described as both “prey and predator,” containing more than 800 active microbes. The liquid is applied spring and fall at a rate of 64 ounces per acre. It is designed to improve soil health, allowing better root structure and decreasing the need for inputs over the long term.
“We help you build carbon in the soil, and the more carbon you have in the soil, the more you have to sell,” Nelson said.
But just who is buying these carbon credits? Major international companies, from Microsoft to Ralph Lauren to airlines need to purchase carbon credits in order to reduce their carbon footprint. He used Delta Airlines as an example and encouraged flyers to look their ticket over carefully the next time they travel as it generally shows both total emissions on one side, and the carbon credits they have purchased on the other side to help offset that figure.
In other words, those jet trails in the sky just might be the next opportunity for farm income down below.
Fields enrolled in the program are soil tested each fall and the results are third party verified as to the extra carbon that is captured in the soil. Its first year out, Holganix paid $43 per acre. This year that figure is up to $70 per acre. Of course, there is also a cost involved. Nelson put that figure at $40 per acre.
That cost can also be offset by lower input costs. While he encouraged farmers to go slow on cutting back on nitrogen, other inputs can be reduced sooner. Precise soil maps are throughout the program.
“You can get to $30 to $40 savings on inputs pretty quickly,” Nelson said.
Asked how it may affect rental and lease agreements, he encouraged an open road of communication.
“Talk with your farm manager first,” Nelson said.
Playing host for much of the evening was Gary Nelson, who has rented the Smeltzer farmland for some 40 years. He recalled the late Ann Smeltzer fondly and recalled her great concern for the environment and sound farm practices.
“She was very educated and loved the environment,” Gary Nelson said. “She always wanted to keep up-to-date and make sure we used safe practices.”
When he started farming her land, the only crops she wanted were oats, soybeans and alfalfa in rotation. The evening presentation seemed to fit well with her focus on best practices, as well as helping farmers succeed.
“Carbon is a buzzword right now,” Gary Nelson said. “With commodity prices depressed, farmers are looking for additional revenue streams and this is something to consider and learn about.”
After all, it is called the Smeltzer Learning Farm, and as its long-time tenant, Gary Nelson was only too happy to share the work being done and help farmers learn more about boosting revenue with a program that actually improves soil health along the way.
