THE REST of the STORY

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THE REST of the STORY

• Michael McDonnell

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The Tale of Two Cities
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Smokey and the Bandit

• Were going to do what cant be done.
• Teach an ol dog

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(No Transcript)
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Chicago Climate Exchange

• International Rules-Based Greenhouse gas emission
  reduction, audit, registry and trading program
  based in the US. (Keoto rules)
• 500 million metric tons in the US only.
• NO WORLD TRADE ALLOWED
• Is a private (not government) group

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Rules are Political and EmotionalNot Scientific

• 1. The _at_! Keoto Rules are the Rules!
• 2. It does not have to make sense, or be logical.
• 3. Date of seeding and management practice are
  not open to debate. Take it or leave it!
• 4. Any questions, or want to argue. See 1.

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Major Ag Options

• 1. New seeded grass (after 1/1/1999), (1 mt/a)
• 2. Minimum tillage (.2 or .6 mt/a)
• 3. Rangeland (not available in MO)
• 4. Forestry (15 yr, .669 to 1.91 mt/a)(trees
  allowed elm, ash, cottonwood, maple, beech,
  birch, oak, hickory, pine) 250 stems/a. must be
  certified as sustainable forester. No harvesting
  allowed

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Current Aggregators

• Iowa Farm Bureau, largest
• North Dakota Farmers Union
• Sun One Solutions, friendliest, caps verification
  costs, you chose when to sell

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Client AffectsGovernment AffectsGovernment
Effects
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Client Affects

• 6 to 8 months for payment

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Client Affects

• 6 to 8 months for payment
• 5 year program is 6 years in payments.

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Client Affects

• 6 to 8 months for payment
• 5 year program is 6 years in payments.
• Value varies year to year.

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Client Affects

• 4. 20 held back is not sold until year 6.

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Client Affects

• 4. 20 held back is not sold until year 6.
• 5. Client pays for verification.

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Client Affects

• 4. 20 held back is not sold until year 6.
• 5. Client pays for verification.
• 6. 10 chance of verification each year, if under
  10,000 acres

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Client Affects

• 7. If 10,000 or more acres, verification years 1
  and 5 is mandatory, 10 chance years 2,3 and 4.
  Cost of 5,000 and up per verification.

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Government Affects

1. Correct Form 578, with date planted.
2. Maps with correct field numbers.
3. These are part of your job description, please
   act kindly.
4. Form ? To release 578 and maps.

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Government Affects

• Rangeland is currently not allowed in MO, but
  prepare grazing plans and documentation. This is
  a large task, and may require many days of work
  per client.

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Government Affects

• Ask if helping client fill out paper work for
  profit is a conflict of interest, if done on
  personal time. 2 to 10 of payment is a fair
  value depending on work required.

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Government Effects

• 1. Carbon Credit rules may change by 2010.
• 2. In 2010 US may sign new Keoto treaty
• 3. A metric ton of carbon was 3.75 in US now
  1.20. 2009 State Reggie funds are 4.00.
• 4. A metric ton of carbon is 30 to 40 on world
  market.

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Government Effects

• 5. This makes existing US carbon credits worth 2
  billion dollars.
• 6. The extra world demand could be an extra 3
  billion dollars.
• 7. It soon becomes real money and politics will
  become involved.

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Government Effects

• 8. New positions may be created for the export of
  carbon credits.
• 9. With weaker economy, either ride the wave or
  drown. Get prepared now!

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Carbon Credits

1. Are here to stay
2. Represent free money to producer.
3. Be prepared and profit from it.