For more than a decade, farmers have been able to take advantage of the carbon offset program run by Alberta’s Department of Environment and Parks. The program helps large industrial emitters comply with the Specified Gas Emitters Regulation by purchasing offset credits that other producers have made available.
Each year, Alberta farmers must register their aggregator. For the year 2018, the registration deadline is April 29th. This is a change from previous years in which farmers could claim the credit at the end of the season. This year, farmers need to identify the field for which they are planning on requesting credits.
If you have already registered your aggregator but have concerns about other aspects of your farming business, including insurance coverage, talk with a TSG Insurance agent in Calgary, Medicine Hat, or Brooks. We can help safeguard your farm and equipment for you and your family.
Make the Most of Your Credits
Even though the program has been around since 2007, many farmers in Alberta are still not aware of the Emission Offset System Program. By not utilizing this program, many are leaving money on the table that could help their farming business. Here are the basics of the program:
- What is an offset? The idea is that one party will receive a credit for reducing their greenhouse gas emissions. The credits can be purchased by another party to offset their emission levels.
- How does the system work? To qualify for credits, farmers have to follow strict government approved protocols to make sure emission reductions are real and quantifiable. Once a farmer registers, the offset credits can be sold to larger emitters that have not been able to meet the reduction mandate.
- What is new for 2018? In the past, a farmer would claim the credits after the growing season. For 2018, you must determine what fields you are considering requesting credits for the growing season and register by April 29th.
- How long does the process take? On average, the process takes about 10 days. So, you do not want to wait too long to start the paperwork.
- Do I have to use a specific process? To claim carbon credits, you need to be using no-till farming practices. Basically, the requirement centers on a percentage of cultivation and seeding activity which is set at 46%.
- What kind of compensation can I expect? The location of your land determines the value of the credits. For example, south of Calgary, the determining line is Highway 2. Land east of the highway has lower rates than land situated to the west.
- What happens if I miss the deadline? Farmers that fail to register in time will not receive money from their credits earlier than 2020.
Talk with a TSG Agent to Safeguard Your Farm
Avoid leaving money unclaimed by registering for your carbon credits. Save money while doing the best for your farm through proper insurance coverage. Speak with a professional broker at TSG Insurance. We are glad to discuss the best coverage and policies for your farm.
Feel free to call us toll-free at 800-830-9423 to book an appointment at one of our convenient locations in Calgary, Brooks, Medicine Hat, Edmonton, or Bassano. You can also reach out to us online and we will respond as quickly as possible.